PepsiCo, Inc. stock research
FY2024 Q2
PepsiCo (PEP) Gross Margin — Quarter Ended Jun 15, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue decreased year over year. Gross margin improved sequentially and year over year, reflecting a favorable relationship between revenue growth and cost management.
Gross margin takeaway
Quarter ended Jun 15, 2024 · FY2024 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue decreased year over year. Gross margin improved sequentially and year over year, reflecting a favorable relationship between revenue growth and cost management.
- The strongest observable margin driver is the reduction in cost of revenue relative to revenue, which supported gross margin expansion both sequentially and year over year.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were 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
55.9%
Gross profit
$12.6B
Revenue
$22.5B
Cost of revenue
$9.9B
Quarter-over-quarter change
+1.1 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 |
|---|---|---|---|---|
| Jun 17, 2023 | $22.3B | $12.2B | $10.1B | 54.7% |
| Sep 9, 2023 | $23.5B | $12.8B | $10.7B | 54.5% |
| Mar 23, 2024 | $18.3B | $10.0B | $8.2B | 54.8% |
| Jun 15, 2024 | $22.5B | $12.6B | $9.9B | 55.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 23, 2024
+1.1 pts
Year-over-year change
Jun 17, 2023
+1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the reduction in cost of revenue relative to revenue, which supported gross margin expansion both sequentially and year over year.
Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin strengthened.
Monitor the trajectory of cost of sales in future quarters to assess whether the current favorable cost trend can be sustained.