Leidos Holdings, Inc. stock research
FY2024 Q2
Leidos Holdings (LDOS) Gross Margin — Quarter Ended Jun 28, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved relative to both periods, reflecting a stronger relationship between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Jun 28, 2024 · FY2024 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved relative to both periods, reflecting a stronger relationship between revenue and cost of revenue.
- The improvement in gross margin was driven by gross profit growing faster than revenue, as cost of revenue increased at a slower pace relative to revenue growth.
- Compared to the immediately preceding quarter, gross margin was higher, supported by a larger increase in gross profit relative to revenue. Versus the same quarter one year earlier, gross margin also improved, with gross profit rising more than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
16.6%
Gross profit
$680.0M
Revenue
$4.1B
Cost of revenue
$3.4B
Quarter-over-quarter change
+1.0 pts
Year-over-year change
+2.3 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 |
|---|---|---|---|---|
| Sep 29, 2023 | $3.9B | $563.0M | $3.3B | 14.4% |
| Dec 29, 2023 | $4.0B | $565.0M | $3.4B | 14.3% |
| Mar 29, 2024 | $4.0B | $614.0M | $3.3B | 15.5% |
| Jun 28, 2024 | $4.1B | $680.0M | $3.4B | 16.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 29, 2024
+1.0 pts
Year-over-year change
Jun 30, 2023
+2.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was driven by gross profit growing faster than revenue, as cost of revenue increased at a slower pace relative to revenue growth.
Compared to the immediately preceding quarter, gross margin was higher, supported by a larger increase in gross profit relative to revenue. Versus the same quarter one year earlier, gross margin also improved, with gross profit rising more than revenue.
Monitor the trend in cost of revenue relative to revenue, as its growth rate directly influences gross margin stability.