PF

Pfizer Inc. stock research

Jun 30, 2024

FY2024 Q2

Pfizer (PFE) Gross Margin — Quarter Ended Jun 30, 2024

Revenue decreased compared to the prior quarter, while gross profit also declined, and cost of revenue was slightly lower. Gross margin weakened slightly from the preceding quarter but remained essentially stable compared to the same quarter last year.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue decreased compared to the prior quarter, while gross profit also declined, and cost of revenue was slightly lower. Gross margin weakened slightly from the preceding quarter but remained essentially stable compared to the same quarter last year.

  • The strongest observable margin driver is the relationship between the change in gross profit and the change in revenue. Gross profit declined at a slightly faster rate than revenue from the prior quarter, leading to a marginal weakening of gross margin.
  • Compared to the immediately preceding quarter, revenue and gross profit were both lower, while gross margin weakened slightly. Compared to the same quarter one year earlier, revenue and gross profit were both slightly higher, and gross margin remained nearly unchanged.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

75.2%

Gross profit

$10.0B

Revenue

$13.3B

Cost of revenue

$3.3B

Quarter-over-quarter change

-2.1 pts

Year-over-year change

+0.0 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Oct 1, 2023$13.5B$4.2B$9.3B31.3%
Dec 31, 2023$14.6B$7.0B$7.6B48.1%
Mar 31, 2024$14.9B$11.5B$3.4B77.3%
Jun 30, 2024$13.3B$10.0B$3.3B75.2%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2024

-2.1 pts

Year-over-year change

Jul 2, 2023

+0.0 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 the change in gross profit and the change in revenue. Gross profit declined at a slightly faster rate than revenue from the prior quarter, leading to a marginal weakening of gross margin.

Compared to the immediately preceding quarter, revenue and gross profit were both lower, while gross margin weakened slightly. Compared to the same quarter one year earlier, revenue and gross profit were both slightly higher, and gross margin remained nearly unchanged.

Monitor the relationship between cost of revenue and revenue in future quarters, as any divergence could signal a more pronounced shift in gross margin.