S&P Global Inc. stock research
FY2024 Q3
S&P Global (SPGI) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit increased both sequentially and year-over-year, while cost of revenue was higher than a year ago but similar to the prior quarter. The gross margin improved compared with the immediately preceding quarter and the same quarter one year earlier.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit increased both sequentially and year-over-year, while cost of revenue was higher than a year ago but similar to the prior quarter. The gross margin improved compared with the immediately preceding quarter and the same quarter one year earlier.
- The gross margin improvement was driven by revenue growing at a faster rate than cost of revenue, particularly when comparing to the year-ago period, as revenue increased while cost of revenue rose more modestly.
- Compared to the prior quarter, revenue was higher while gross profit remained similar, resulting in a higher gross margin. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were all higher, but the gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.2%
Gross profit
$2.5B
Revenue
$3.6B
Cost of revenue
$1.1B
Quarter-over-quarter change
+0.6 pts
Year-over-year change
+2.5 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 | $3.2B | $2.1B | $1.0B | 67.3% |
| Mar 31, 2024 | $3.5B | $2.4B | $1.1B | 68.2% |
| Jun 30, 2024 | $3.5B | $2.5B | $1.1B | 69.6% |
| Sep 30, 2024 | $3.6B | $2.5B | $1.1B | 70.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.6 pts
Year-over-year change
Sep 30, 2023
+2.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by revenue growing at a faster rate than cost of revenue, particularly when comparing to the year-ago period, as revenue increased while cost of revenue rose more modestly.
Compared to the prior quarter, revenue was higher while gross profit remained similar, resulting in a higher gross margin. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were all higher, but the gross margin improved.
Monitor the trend in cost of revenue relative to revenue, as any change in this relationship could affect gross margin.