SP

S&P Global Inc. stock research

Jun 30, 2024

FY2024 Q2

S&P Global (SPGI) Gross Margin — Quarter Ended Jun 30, 2024

Revenue was unchanged from the prior quarter but higher compared to the same quarter last year, while cost of revenue was stable versus the prior quarter and also higher year over year. Gross profit increased from both the prior quarter and the year-ago quarter, resulting in a gross margin that improved sequentially and relative to the same period a year earlier.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue was unchanged from the prior quarter but higher compared to the same quarter last year, while cost of revenue was stable versus the prior quarter and also higher year over year. Gross profit increased from both the prior quarter and the year-ago quarter, resulting in a gross margin that improved sequentially and relative to the same period a year earlier.

  • The gross margin improvement in the current quarter reflects a favorable relationship where gross profit increased while revenue held steady relative to the prior quarter. Compared to the same quarter last year, both revenue and gross profit grew, with gross profit increasing at a faster pace than cost of revenue.
  • Gross margin in the current quarter is higher versus both the immediately preceding quarter and the same quarter one year prior. Revenue was comparable to the prior quarter but higher year over year.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

69.6%

Gross profit

$2.5B

Revenue

$3.5B

Cost of revenue

$1.1B

Quarter-over-quarter change

+1.4 pts

Year-over-year change

+2.7 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$3.1B$2.1B$995.0M67.7%
Dec 31, 2023$3.2B$2.1B$1.0B67.3%
Mar 31, 2024$3.5B$2.4B$1.1B68.2%
Jun 30, 2024$3.5B$2.5B$1.1B69.6%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2024

+1.4 pts

Year-over-year change

Jun 30, 2023

+2.7 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin improvement in the current quarter reflects a favorable relationship where gross profit increased while revenue held steady relative to the prior quarter. Compared to the same quarter last year, both revenue and gross profit grew, with gross profit increasing at a faster pace than cost of revenue.

Gross margin in the current quarter is higher versus both the immediately preceding quarter and the same quarter one year prior. Revenue was comparable to the prior quarter but higher year over year.

Monitor the relationship between revenue and cost of revenue in upcoming quarters, as cost of revenue has increased year over year while revenue growth may vary.