Solventum Corporation stock research
FY2024 Q4
Solventum (SOLV) Gross Margin — Quarter Ended Dec 31, 2024
Revenue remained stable compared to the prior quarter, while gross profit and gross margin both declined. Cost of revenue increased relative to the same quarter last year, contributing to a lower gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue remained stable compared to the prior quarter, while gross profit and gross margin both declined. Cost of revenue increased relative to the same quarter last year, contributing to a lower gross margin.
- The decline in gross margin from the prior quarter and the year-ago quarter was primarily driven by a higher cost of revenue relative to revenue.
- Compared to the prior quarter, gross margin weakened as gross profit decreased while revenue was stable. Versus the same quarter last year, gross margin also weakened, with revenue slightly higher but gross profit lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
53.9%
Gross profit
$1.1B
Revenue
$2.1B
Cost of revenue
$956.0M
Quarter-over-quarter change
-2.0 pts
Year-over-year change
-2.9 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, 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% |
| Dec 31, 2024 | $2.1B | $1.1B | $956.0M | 53.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-2.0 pts
Year-over-year change
Dec 31, 2023
-2.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross margin from the prior quarter and the year-ago quarter was primarily driven by a higher cost of revenue relative to revenue.
Compared to the prior quarter, gross margin weakened as gross profit decreased while revenue was stable. Versus the same quarter last year, gross margin also weakened, with revenue slightly higher but gross profit lower.
Monitor the trend in cost of revenue, as its increase relative to revenue has pressured gross margin.