The Procter & Gamble Company stock research
FY2024 Q2
The Procter & Gamble (PG) Gross Margin — Quarter Ended Dec 31, 2023
Revenue decreased compared to the prior quarter but increased year over year, while cost of revenue declined in both comparisons, resulting in a higher gross margin. The filing notes that management uses non-GAAP measures such as organic sales growth and Core EPS alongside GAAP measures to evaluate performance.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2024 Q2
Revenue decreased compared to the prior quarter but increased year over year, while cost of revenue declined in both comparisons, resulting in a higher gross margin. The filing notes that management uses non-GAAP measures such as organic sales growth and Core EPS alongside GAAP measures to evaluate performance.
- The strongest observable margin driver was the decline in cost of revenue relative to revenue, as cost of revenue decreased both sequentially and year over year while revenue changes were less pronounced.
- Compared to the immediately preceding quarter, revenue was lower, gross profit was slightly lower, and gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, while cost of revenue was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
52.7%
Gross profit
$11.3B
Revenue
$21.4B
Cost of revenue
$10.1B
Quarter-over-quarter change
+0.7 pts
Year-over-year change
+5.1 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% |
| Dec 31, 2023 | $21.4B | $11.3B | $10.1B | 52.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+0.7 pts
Year-over-year change
Dec 31, 2022
+5.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the decline in cost of revenue relative to revenue, as cost of revenue decreased both sequentially and year over year while revenue changes were less pronounced.
Compared to the immediately preceding quarter, revenue was lower, gross profit was slightly lower, and gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, while cost of revenue was lower.
Monitor the trend in cost of revenue, as its movement relative to revenue will continue to influence gross margin.