Johnson & Johnson stock research
FY2024 Q2
Johnson & Johnson (JNJ) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly from both periods as cost of revenue rose more than proportionally.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly from both periods as cost of revenue rose more than proportionally.
- The primary observable factor was the relative increase in cost of revenue, which grew faster than revenue and narrowed the gross margin.
- Compared to the prior quarter, revenue and gross profit were higher, but gross margin was lower. Compared to the same quarter last year, revenue and gross profit were higher, while gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
69.4%
Gross profit
$15.6B
Revenue
$22.4B
Cost of revenue
$6.9B
Quarter-over-quarter change
-0.2 pts
Year-over-year change
-0.6 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $22.4B | $15.6B | $6.9B | 69.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-0.2 pts
Year-over-year change
Jul 2, 2023
-0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable factor was the relative increase in cost of revenue, which grew faster than revenue and narrowed the gross margin.
Compared to the prior quarter, revenue and gross profit were higher, but gross margin was lower. Compared to the same quarter last year, revenue and gross profit were higher, while gross margin was lower.
Monitor whether cost of revenue continues to increase at a rate that outpaces revenue growth, as this could further pressure gross margin.