3M Company stock research
FY2024 Q3
3M (MMM) Gross Margin — Quarter Ended Sep 30, 2024
Revenue was unchanged from both the prior quarter and the year-ago quarter, while gross profit held steady year-over-year but edged lower sequentially. Cost of revenue declined from a year earlier but remained flat versus the prior quarter, resulting in gross margin that improved from the same period last year but weakened slightly from the previous quarter.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue was unchanged from both the prior quarter and the year-ago quarter, while gross profit held steady year-over-year but edged lower sequentially. Cost of revenue declined from a year earlier but remained flat versus the prior quarter, resulting in gross margin that improved from the same period last year but weakened slightly from the previous quarter.
- Revenue was stable across both comparison periods, making the change in cost of revenue the primary influence on gross margin. The year-over-year improvement in margin was driven by lower cost of revenue relative to unchanged revenue, while the sequential decline reflected an increase in gross profit that did not keep pace with revenue.
- Compared to the prior quarter, gross margin was slightly lower as gross profit decreased modestly while revenue stayed level. Versus the same quarter one year earlier, gross margin was higher, with gross profit unchanged and cost of revenue lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.1%
Gross profit
$2.6B
Revenue
$6.3B
Cost of revenue
$3.6B
Quarter-over-quarter change
-0.9 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $6.3B | $2.6B | $3.6B | 42.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-0.9 pts
Year-over-year change
Sep 30, 2023
+1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Revenue was stable across both comparison periods, making the change in cost of revenue the primary influence on gross margin. The year-over-year improvement in margin was driven by lower cost of revenue relative to unchanged revenue, while the sequential decline reflected an increase in gross profit that did not keep pace with revenue.
Compared to the prior quarter, gross margin was slightly lower as gross profit decreased modestly while revenue stayed level. Versus the same quarter one year earlier, gross margin was higher, with gross profit unchanged and cost of revenue lower.
Monitor the stability of cost of revenue given its direct impact on gross margin when revenue is flat.