The Procter & Gamble Company stock research
FY2024 Q3
The Procter & Gamble (PG) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit decreased from the preceding quarter but increased from the same quarter one year earlier. The gross margin weakened sequentially but improved compared to the year-ago period, reflecting a mixed relationship among revenue, cost of revenue, and gross profit.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q3
Revenue and gross profit decreased from the preceding quarter but increased from the same quarter one year earlier. The gross margin weakened sequentially but improved compared to the year-ago period, reflecting a mixed relationship among revenue, cost of revenue, and gross profit.
- The cost of revenue changed relative to revenue in opposite directions across the two comparisons: it decreased from the prior year, supporting margin expansion, but it declined less than revenue from the prior quarter, pressuring the margin.
- Versus the immediately preceding quarter, revenue was lower and cost of revenue was slightly lower, resulting in a lower gross profit and a weaker gross margin. Versus the same quarter one year earlier, revenue was higher while cost of revenue was lower, leading to higher gross profit and an improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
51.2%
Gross profit
$10.3B
Revenue
$20.2B
Cost of revenue
$9.9B
Quarter-over-quarter change
-1.5 pts
Year-over-year change
+3.0 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $20.2B | $10.3B | $9.9B | 51.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-1.5 pts
Year-over-year change
Mar 31, 2023
+3.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The cost of revenue changed relative to revenue in opposite directions across the two comparisons: it decreased from the prior year, supporting margin expansion, but it declined less than revenue from the prior quarter, pressuring the margin.
Versus the immediately preceding quarter, revenue was lower and cost of revenue was slightly lower, resulting in a lower gross profit and a weaker gross margin. Versus the same quarter one year earlier, revenue was higher while cost of revenue was lower, leading to higher gross profit and an improved gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as its recent mixed behavior directly influenced the gross margin trend.