3M Company stock research
FY2024 Q2
3M (MMM) Gross Margin — Quarter Ended Jun 30, 2024
Revenue remained stable compared to the same quarter one year earlier, while gross profit improved and cost of revenue declined, resulting in a higher gross margin. The gross margin also increased sequentially from the prior quarter, driven by a larger rise in gross profit relative to the smaller increase in revenue.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue remained stable compared to the same quarter one year earlier, while gross profit improved and cost of revenue declined, resulting in a higher gross margin. The gross margin also increased sequentially from the prior quarter, driven by a larger rise in gross profit relative to the smaller increase in revenue.
- The strongest observable driver is the improvement in gross profit relative to cost of revenue, as gross profit rose while cost of revenue fell compared to the prior quarter and the year-ago quarter.
- Compared with the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved. Relative to the same quarter one year earlier, revenue was stable, gross profit was higher, cost of revenue was lower, and gross margin strengthened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.9%
Gross profit
$2.7B
Revenue
$6.3B
Cost of revenue
$3.6B
Quarter-over-quarter change
+0.8 pts
Year-over-year change
+2.2 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $6.3B | $2.7B | $3.6B | 42.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+0.8 pts
Year-over-year change
Jun 30, 2023
+2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the improvement in gross profit relative to cost of revenue, as gross profit rose while cost of revenue fell compared to the prior quarter and the year-ago quarter.
Compared with the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved. Relative to the same quarter one year earlier, revenue was stable, gross profit was higher, cost of revenue was lower, and gross margin strengthened.
Monitor whether the lower cost of revenue trend continues in subsequent quarters, as it was key to the gross margin expansion.