Leidos Holdings, Inc. stock research
FY2024 Q4
Leidos Holdings (LDOS) Gross Margin — Quarter Ended Jan 3, 2025
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit rose year-over-year but declined sequentially. The gross margin weakened from the preceding quarter but improved relative to the year-ago period, reflecting a mixed relationship among revenue, cost of revenue, and gross profit.
Gross margin takeaway
Quarter ended Jan 3, 2025 · FY2024 Q4
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit rose year-over-year but declined sequentially. The gross margin weakened from the preceding quarter but improved relative to the year-ago period, reflecting a mixed relationship among revenue, cost of revenue, and gross profit.
- The strongest observable margin driver is the sequential increase in cost of revenue relative to revenue, which outpaced revenue growth and compressed gross profit. This drove the gross margin lower compared to the prior quarter.
- Compared to the immediately preceding quarter, gross margin was lower as cost of revenue rose faster than revenue. Compared to the same quarter one year earlier, gross margin was higher, with gross profit growing more than cost of revenue relative to the revenue base.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
15.6%
Gross profit
$677.0M
Revenue
$4.3B
Cost of revenue
$3.7B
Quarter-over-quarter change
-2.2 pts
Year-over-year change
+1.3 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 |
|---|---|---|---|---|
| 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% |
| Jan 3, 2025 | $4.3B | $677.0M | $3.7B | 15.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 27, 2024
-2.2 pts
Year-over-year change
Dec 29, 2023
+1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sequential increase in cost of revenue relative to revenue, which outpaced revenue growth and compressed gross profit. This drove the gross margin lower compared to the prior quarter.
Compared to the immediately preceding quarter, gross margin was lower as cost of revenue rose faster than revenue. Compared to the same quarter one year earlier, gross margin was higher, with gross profit growing more than cost of revenue relative to the revenue base.
Monitor the trajectory of cost of revenue relative to revenue, as its sequential increase outpaced revenue growth and directly weakened gross margin.