Johnson & Johnson stock research
FY2024 Q1
Johnson & Johnson (JNJ) Gross Margin — Quarter Ended Mar 31, 2024
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit increased as cost of revenue decreased, leading to an improved gross margin; the filing notes that operating cash flows contributed to a higher cash balance.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit increased as cost of revenue decreased, leading to an improved gross margin; the filing notes that operating cash flows contributed to a higher cash balance.
- The strongest observable driver was the lower cost of revenue, which declined both sequentially and year-over-year, while revenue remained steady or grew.
- Compared to the prior quarter, gross margin improved as cost of revenue decreased while revenue was unchanged. Versus the same quarter last year, gross margin also improved, with revenue growth and a lower cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
69.6%
Gross profit
$14.9B
Revenue
$21.4B
Cost of revenue
$6.5B
Quarter-over-quarter change
+0.5 pts
Year-over-year change
+1.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Apr 2, 2023 | $20.9B | $14.2B | $6.7B | 68.0% |
| Jul 2, 2023 | $21.5B | $15.1B | $6.5B | 70.0% |
| Oct 1, 2023 | $21.4B | $14.7B | $6.6B | 69.1% |
| Mar 31, 2024 | $21.4B | $14.9B | $6.5B | 69.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 1, 2023
+0.5 pts
Year-over-year change
Apr 2, 2023
+1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver was the lower cost of revenue, which declined both sequentially and year-over-year, while revenue remained steady or grew.
Compared to the prior quarter, gross margin improved as cost of revenue decreased while revenue was unchanged. Versus the same quarter last year, gross margin also improved, with revenue growth and a lower cost of revenue.
Monitor whether the lower cost of revenue level persists in future quarters.