Leidos Holdings, Inc. stock research
FY2024 Q3
Leidos Holdings (LDOS) Gross Margin — Quarter Ended Sep 27, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose less proportionally, resulting in an improved gross margin. The relationship among these metrics indicates that gross profit growth outpaced revenue growth, leading to a higher gross margin.
Gross margin takeaway
Quarter ended Sep 27, 2024 · FY2024 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose less proportionally, resulting in an improved gross margin. The relationship among these metrics indicates that gross profit growth outpaced revenue growth, leading to a higher gross margin.
- The most observable driver of the gross margin improvement is that gross profit grew faster than revenue, with cost of revenue increasing at a slower pace.
- Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
17.8%
Gross profit
$741.0M
Revenue
$4.2B
Cost of revenue
$3.4B
Quarter-over-quarter change
+1.2 pts
Year-over-year change
+3.3 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 |
|---|---|---|---|---|
| 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% |
| Sep 27, 2024 | $4.2B | $741.0M | $3.4B | 17.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 28, 2024
+1.2 pts
Year-over-year change
Sep 29, 2023
+3.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of the gross margin improvement is that gross profit grew faster than revenue, with cost of revenue increasing at a slower pace.
Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was also higher.
Monitor the trend in cost of revenue relative to revenue to see if the current cost containment continues.