Johnson & Johnson stock research
FY2024 Q3
Johnson & Johnson (JNJ) Gross Margin — Quarter Ended Sep 29, 2024
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit was slightly lower than the prior quarter but higher year over year, while cost of revenue rose in both comparisons, resulting in a gross margin that was marginally lower sequentially and essentially flat year over year.
Gross margin takeaway
Quarter ended Sep 29, 2024 · FY2024 Q3
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit was slightly lower than the prior quarter but higher year over year, while cost of revenue rose in both comparisons, resulting in a gross margin that was marginally lower sequentially and essentially flat year over year.
- The relationship among revenue, gross profit, and cost of revenue shows that revenue growth was accompanied by a proportional increase in cost of revenue, keeping gross profit nearly stable sequentially and higher year over year. Gross margin remained in a narrow range, indicating a consistent cost structure relative to revenue.
- Compared to the immediately preceding quarter, revenue was higher, cost of revenue was higher, gross profit was slightly lower, and gross margin weakened marginally. Compared to the same quarter one year earlier, revenue was higher, cost of revenue was higher, gross profit was higher, and gross margin was essentially stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
69.0%
Gross profit
$15.5B
Revenue
$22.5B
Cost of revenue
$7.0B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
-0.0 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 |
|---|---|---|---|---|
| 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% |
| Sep 29, 2024 | $22.5B | $15.5B | $7.0B | 69.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-0.4 pts
Year-over-year change
Oct 1, 2023
-0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship among revenue, gross profit, and cost of revenue shows that revenue growth was accompanied by a proportional increase in cost of revenue, keeping gross profit nearly stable sequentially and higher year over year. Gross margin remained in a narrow range, indicating a consistent cost structure relative to revenue.
Compared to the immediately preceding quarter, revenue was higher, cost of revenue was higher, gross profit was slightly lower, and gross margin weakened marginally. Compared to the same quarter one year earlier, revenue was higher, cost of revenue was higher, gross profit was higher, and gross margin was essentially stable.
Monitor the trend in cost of revenue relative to revenue, as the slight sequential margin decline may warrant attention. The filing notes that operating cash flow was supported by net earnings and non-cash adjustments; tracking these cash flow components could provide additional context for margin sustainability.