Pfizer Inc. stock research
FY2024 Q1
Pfizer (PFE) Gross Margin — Quarter Ended Mar 31, 2024
Revenue increased slightly from the prior quarter, while cost of revenue dropped substantially, resulting in a higher gross profit and a much improved gross margin. Compared to the same quarter one year earlier, revenue and gross profit were lower, but cost of revenue also declined, leading to a gross margin that was slightly higher.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue increased slightly from the prior quarter, while cost of revenue dropped substantially, resulting in a higher gross profit and a much improved gross margin. Compared to the same quarter one year earlier, revenue and gross profit were lower, but cost of revenue also declined, leading to a gross margin that was slightly higher.
- The most observable driver is the sharp reduction in cost of revenue relative to the prior quarter, which widened the gap between revenue and cost and lifted gross margin considerably.
- Gross margin improved strongly from the prior quarter and was slightly higher than the same quarter one year earlier. The prior quarter had a much lower margin due to a higher cost of revenue relative to revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
77.3%
Gross profit
$11.5B
Revenue
$14.9B
Cost of revenue
$3.4B
Quarter-over-quarter change
+29.2 pts
Year-over-year change
+3.7 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 |
|---|---|---|---|---|
| Jul 2, 2023 | $13.0B | $9.8B | $3.2B | 75.1% |
| Oct 1, 2023 | $13.5B | $4.2B | $9.3B | 31.3% |
| Dec 31, 2023 | $14.6B | $7.0B | $7.6B | 48.1% |
| Mar 31, 2024 | $14.9B | $11.5B | $3.4B | 77.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+29.2 pts
Year-over-year change
Apr 2, 2023
+3.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver is the sharp reduction in cost of revenue relative to the prior quarter, which widened the gap between revenue and cost and lifted gross margin considerably.
Gross margin improved strongly from the prior quarter and was slightly higher than the same quarter one year earlier. The prior quarter had a much lower margin due to a higher cost of revenue relative to revenue.
Monitor the revenue contribution from recently acquired products, as the filing notes they helped offset declines in other product lines.