Solventum Corporation stock research
FY2024 Q3
Solventum (SOLV) Gross Margin — Quarter Ended Sep 30, 2024
Revenue was stable compared to the prior quarter and the same quarter last year. Gross profit improved relative to the prior quarter but weakened compared to the year-ago quarter, while cost of revenue was lower than the prior quarter but higher than the year-ago quarter, resulting in a gross margin that improved sequentially but declined year-over-year.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue was stable compared to the prior quarter and the same quarter last year. Gross profit improved relative to the prior quarter but weakened compared to the year-ago quarter, while cost of revenue was lower than the prior quarter but higher than the year-ago quarter, resulting in a gross margin that improved sequentially but declined year-over-year.
- The strongest observable margin driver is the change in cost of revenue, which decreased from the prior quarter and increased from the year-ago quarter, directly affecting gross profit and margin.
- Compared to the immediately preceding quarter, gross margin improved as gross profit increased while cost of revenue decreased. Compared to the same quarter one year earlier, gross margin weakened as gross profit decreased while cost of revenue increased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
56.0%
Gross profit
$1.2B
Revenue
$2.1B
Cost of revenue
$917.0M
Quarter-over-quarter change
+1.3 pts
Year-over-year change
-2.3 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 | $2.0B | $1.2B | $878.0M | 56.9% |
| Mar 31, 2024 | $2.0B | $1.2B | $844.0M | 58.1% |
| Jun 30, 2024 | $2.1B | $1.1B | $944.0M | 54.6% |
| Sep 30, 2024 | $2.1B | $1.2B | $917.0M | 56.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+1.3 pts
Year-over-year change
Sep 30, 2023
-2.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in cost of revenue, which decreased from the prior quarter and increased from the year-ago quarter, directly affecting gross profit and margin.
Compared to the immediately preceding quarter, gross margin improved as gross profit increased while cost of revenue decreased. Compared to the same quarter one year earlier, gross margin weakened as gross profit decreased while cost of revenue increased.
Monitor the trend in cost of revenue, as its movement relative to revenue directly influences gross margin.