Johnson & Johnson stock research
FY2024 Q4
Johnson & Johnson (JNJ) Gross Margin — Quarter Ended Dec 29, 2024
Revenue was stable compared to the prior quarter, while cost of revenue increased slightly, resulting in a modest decline in gross profit and gross margin. Relative to the same quarter last year, revenue and gross profit were higher, and gross margin improved marginally.
Gross margin takeaway
Quarter ended Dec 29, 2024 · FY2024 Q4
Revenue was stable compared to the prior quarter, while cost of revenue increased slightly, resulting in a modest decline in gross profit and gross margin. Relative to the same quarter last year, revenue and gross profit were higher, and gross margin improved marginally.
- The most notable margin driver was the relative movement of cost of revenue compared to revenue; sequentially, cost rose while revenue held steady, compressing margin, whereas year-over-year revenue growth exceeded cost growth, supporting a slight margin expansion.
- Compared to the immediately preceding quarter, gross margin weakened slightly as cost of revenue increased while revenue was flat. Versus the same quarter one year earlier, gross margin improved modestly, with revenue and gross profit both higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
68.3%
Gross profit
$15.4B
Revenue
$22.5B
Cost of revenue
$7.1B
Quarter-over-quarter change
-0.7 pts
Year-over-year change
+0.1 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 |
|---|---|---|---|---|
| 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% |
| Dec 29, 2024 | $22.5B | $15.4B | $7.1B | 68.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 29, 2024
-0.7 pts
Year-over-year change
Dec 31, 2023
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable margin driver was the relative movement of cost of revenue compared to revenue; sequentially, cost rose while revenue held steady, compressing margin, whereas year-over-year revenue growth exceeded cost growth, supporting a slight margin expansion.
Compared to the immediately preceding quarter, gross margin weakened slightly as cost of revenue increased while revenue was flat. Versus the same quarter one year earlier, gross margin improved modestly, with revenue and gross profit both higher.
Monitor the relationship between cost of revenue and revenue, as any divergence could affect gross margin stability.