The Procter & Gamble Company stock research
FY2024 Q1
The Procter & Gamble (PG) Gross Margin — Quarter Ended Sep 30, 2023
Revenue rose and cost of revenue fell compared to both the prior quarter and the same quarter last year, resulting in a higher gross profit and an improved gross margin. The period's gross margin exceeded both comparison periods.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2024 Q1
Revenue rose and cost of revenue fell compared to both the prior quarter and the same quarter last year, resulting in a higher gross profit and an improved gross margin. The period's gross margin exceeded both comparison periods.
- The strongest observable driver of the margin improvement is the reduction in cost of revenue relative to revenue. Revenue increased while cost of revenue decreased, directly boosting gross profit.
- Compared to the immediately preceding quarter, revenue was higher and cost of revenue was lower, leading to a higher gross profit and an improved gross margin. The same pattern held when compared to the same quarter one year earlier, with revenue higher and cost of revenue lower, resulting in a stronger gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
52.0%
Gross profit
$11.4B
Revenue
$21.9B
Cost of revenue
$10.5B
Quarter-over-quarter change
+3.6 pts
Year-over-year change
+4.6 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $20.1B | $9.7B | $10.4B | 48.2% |
| Jun 30, 2023 | $20.6B | $9.9B | $10.6B | 48.4% |
| Sep 30, 2023 | $21.9B | $11.4B | $10.5B | 52.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+3.6 pts
Year-over-year change
Sep 30, 2022
+4.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the margin improvement is the reduction in cost of revenue relative to revenue. Revenue increased while cost of revenue decreased, directly boosting gross profit.
Compared to the immediately preceding quarter, revenue was higher and cost of revenue was lower, leading to a higher gross profit and an improved gross margin. The same pattern held when compared to the same quarter one year earlier, with revenue higher and cost of revenue lower, resulting in a stronger gross margin.
Monitor the trajectory of cost of revenue, as its decline relative to revenue was the primary factor in the margin expansion.