Oracle Corporation stock research
FY2024 Q3
Oracle (ORCL) Gross Margin — Quarter Ended Feb 29, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter and more notably from a year ago.
Gross margin takeaway
Quarter ended Feb 29, 2024 · FY2024 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter and more notably from a year ago.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased at a slower pace than cost of revenue compared to both the prior quarter and the year-ago quarter, pressuring gross margin.
- Compared to the immediately preceding quarter, gross margin was slightly lower; compared to the same quarter one year earlier, gross margin was lower. Revenue and gross profit were higher in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.9%
Gross profit
$9.4B
Revenue
$13.3B
Cost of revenue
$3.9B
Quarter-over-quarter change
-0.2 pts
Year-over-year change
-1.4 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 |
|---|---|---|---|---|
| May 31, 2023 | $13.8B | $10.1B | $3.7B | 73.0% |
| Aug 31, 2023 | $12.5B | $8.8B | $3.6B | 71.0% |
| Nov 30, 2023 | $12.9B | $9.2B | $3.7B | 71.1% |
| Feb 29, 2024 | $13.3B | $9.4B | $3.9B | 70.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 30, 2023
-0.2 pts
Year-over-year change
Feb 28, 2023
-1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased at a slower pace than cost of revenue compared to both the prior quarter and the year-ago quarter, pressuring gross margin.
Compared to the immediately preceding quarter, gross margin was slightly lower; compared to the same quarter one year earlier, gross margin was lower. Revenue and gross profit were higher in both comparisons.
Monitor the trend in cost of revenue relative to revenue, as its faster growth is the primary factor behind the margin weakening.