Solventum Corporation stock research
FY2024 Q1
Solventum (SOLV) Gross Margin — Quarter Ended Mar 31, 2024
Revenue was stable compared to both the prior quarter and the same quarter last year. Gross profit improved while cost of revenue declined, leading to a higher gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue was stable compared to both the prior quarter and the same quarter last year. Gross profit improved while cost of revenue declined, leading to a higher gross margin.
- The gross margin strengthened relative to both the preceding quarter and the year-ago quarter, driven by a lower cost of revenue against stable revenue.
- Compared to the immediately preceding quarter, gross margin was higher; compared to the same quarter one year earlier, gross margin was also higher. Revenue was essentially unchanged in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
58.1%
Gross profit
$1.2B
Revenue
$2.0B
Cost of revenue
$844.0M
Quarter-over-quarter change
+1.3 pts
Year-over-year change
+1.6 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $2.1B | $1.2B | $887.0M | 57.3% |
| Sep 30, 2023 | $2.1B | $1.2B | $865.0M | 58.3% |
| Dec 31, 2023 | $2.0B | $1.2B | $878.0M | 56.9% |
| Mar 31, 2024 | $2.0B | $1.2B | $844.0M | 58.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+1.3 pts
Year-over-year change
Mar 31, 2023
+1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin strengthened relative to both the preceding quarter and the year-ago quarter, driven by a lower cost of revenue against stable revenue.
Compared to the immediately preceding quarter, gross margin was higher; compared to the same quarter one year earlier, gross margin was also higher. Revenue was essentially unchanged in both comparisons.
Monitor the trajectory of cost of revenue, as its decline was the primary factor behind the margin improvement.