3M Company stock research
FY2024 Q1
3M (MMM) Gross Margin — Quarter Ended Mar 31, 2024
Revenue remained stable compared to the prior quarter and was slightly lower than the same quarter last year. Gross profit increased and gross margin improved, driven by a reduction in cost of revenue.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue remained stable compared to the prior quarter and was slightly lower than the same quarter last year. Gross profit increased and gross margin improved, driven by a reduction in cost of revenue.
- The decrease in cost of revenue was the strongest observable driver of the gross margin improvement, as revenue held steady.
- Compared to the immediately preceding quarter, gross margin strengthened due to lower cost of revenue. Relative to the same quarter one year earlier, gross margin also improved, with cost of revenue declining while revenue was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.1%
Gross profit
$2.5B
Revenue
$6.0B
Cost of revenue
$3.5B
Quarter-over-quarter change
+1.3 pts
Year-over-year change
+3.9 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, 2023 | $6.1B | $2.3B | $3.7B | 38.2% |
| Jun 30, 2023 | $6.3B | $2.6B | $3.7B | 40.7% |
| Sep 30, 2023 | $6.3B | $2.6B | $3.7B | 40.7% |
| Mar 31, 2024 | $6.0B | $2.5B | $3.5B | 42.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+1.3 pts
Year-over-year change
Mar 31, 2023
+3.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decrease in cost of revenue was the strongest observable driver of the gross margin improvement, as revenue held steady.
Compared to the immediately preceding quarter, gross margin strengthened due to lower cost of revenue. Relative to the same quarter one year earlier, gross margin also improved, with cost of revenue declining while revenue was slightly lower.
Monitor the trajectory of cost of revenue to assess whether the reduction continues.