Eli Lilly and Company stock research
FY2024 Q3
Eli Lilly and (LLY) Gross Margin — Quarter Ended Sep 30, 2024
For the quarter, revenue and gross profit increased compared to both the prior quarter and the same quarter last year, while cost of revenue remained steady sequentially and grew year over year. Gross margin improved as gross profit grew at a faster rate than revenue.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
For the quarter, revenue and gross profit increased compared to both the prior quarter and the same quarter last year, while cost of revenue remained steady sequentially and grew year over year. Gross margin improved as gross profit grew at a faster rate than revenue.
- The strongest observable margin driver is the behavior of cost of revenue relative to revenue. Sequentially, cost of revenue was stable even as revenue grew, and year over year it increased at a slower pace than revenue, directly contributing to the gross margin improvement.
- Compared to the immediately preceding quarter, revenue was slightly higher and gross profit was higher, while cost of revenue was unchanged, resulting in an improved gross margin. Compared to the same quarter one year earlier, revenue and gross profit were markedly higher, cost of revenue was higher, and gross margin still improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.0%
Gross profit
$9.3B
Revenue
$11.4B
Cost of revenue
$2.2B
Quarter-over-quarter change
+0.2 pts
Year-over-year change
+0.6 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 31, 2023 | $9.4B | $7.6B | $1.8B | 80.9% |
| Mar 31, 2024 | $8.8B | $7.1B | $1.7B | 80.9% |
| Jun 30, 2024 | $11.3B | $9.1B | $2.2B | 80.8% |
| Sep 30, 2024 | $11.4B | $9.3B | $2.2B | 81.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.2 pts
Year-over-year change
Sep 30, 2023
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the behavior of cost of revenue relative to revenue. Sequentially, cost of revenue was stable even as revenue grew, and year over year it increased at a slower pace than revenue, directly contributing to the gross margin improvement.
Compared to the immediately preceding quarter, revenue was slightly higher and gross profit was higher, while cost of revenue was unchanged, resulting in an improved gross margin. Compared to the same quarter one year earlier, revenue and gross profit were markedly higher, cost of revenue was higher, and gross margin still improved.
Monitor the trend of cost of revenue relative to revenue, as its stable sequential performance and slower year-over-year growth were key to the margin improvement.