Pfizer Inc. stock research
FY2024 Q3
Pfizer (PFE) Gross Margin — Quarter Ended Sep 29, 2024
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue rose sequentially but fell year over year. Consequently, gross profit and gross margin improved sharply versus the year-ago period but weakened relative to the preceding quarter.
Gross margin takeaway
Quarter ended Sep 29, 2024 · FY2024 Q3
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue rose sequentially but fell year over year. Consequently, gross profit and gross margin improved sharply versus the year-ago period but weakened relative to the preceding quarter.
- The most notable margin driver is the year-over-year recovery in gross margin, which moved from low to high levels as cost of revenue decreased substantially while revenue expanded.
- Compared with the preceding quarter, gross margin was lower as cost of revenue grew at a faster pace than revenue. Versus the same quarter last year, gross margin was sharply higher due to a combination of higher revenue and lower cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.3%
Gross profit
$12.4B
Revenue
$17.7B
Cost of revenue
$5.3B
Quarter-over-quarter change
-4.9 pts
Year-over-year change
+39.0 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $14.6B | $7.0B | $7.6B | 48.1% |
| Mar 31, 2024 | $14.9B | $11.5B | $3.4B | 77.3% |
| Jun 30, 2024 | $13.3B | $10.0B | $3.3B | 75.2% |
| Sep 29, 2024 | $17.7B | $12.4B | $5.3B | 70.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-4.9 pts
Year-over-year change
Oct 1, 2023
+39.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable margin driver is the year-over-year recovery in gross margin, which moved from low to high levels as cost of revenue decreased substantially while revenue expanded.
Compared with the preceding quarter, gross margin was lower as cost of revenue grew at a faster pace than revenue. Versus the same quarter last year, gross margin was sharply higher due to a combination of higher revenue and lower cost of revenue.
Monitor the trajectory of gross margin in subsequent periods to assess whether the sequential weakening persists or stabilizes.