Sysco Corporation stock research
FY2024 Q3
Sysco (SYY) Gross Margin — Quarter Ended Mar 30, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was stable sequentially and higher year-over-year. Gross margin improved versus both periods, reflecting a stronger relationship between revenue growth and cost control.
Gross margin takeaway
Quarter ended Mar 30, 2024 · FY2024 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was stable sequentially and higher year-over-year. Gross margin improved versus both periods, reflecting a stronger relationship between revenue growth and cost control.
- The improvement in gross margin was driven by revenue growing faster than cost of revenue, as revenue rose while cost of revenue remained unchanged sequentially and increased at a slower pace year-over-year.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved. Versus the same quarter one year earlier, all metrics were higher, with gross margin also improving.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
18.6%
Gross profit
$3.6B
Revenue
$19.4B
Cost of revenue
$15.8B
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+0.4 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 |
|---|---|---|---|---|
| Apr 1, 2023 | $18.9B | $3.4B | $15.4B | 18.2% |
| Sep 30, 2023 | $19.6B | $3.6B | $16.0B | 18.6% |
| Dec 30, 2023 | $19.3B | $3.5B | $15.8B | 18.2% |
| Mar 30, 2024 | $19.4B | $3.6B | $15.8B | 18.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 30, 2023
+0.4 pts
Year-over-year change
Apr 1, 2023
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was driven by revenue growing faster than cost of revenue, as revenue rose while cost of revenue remained unchanged sequentially and increased at a slower pace year-over-year.
Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved. Versus the same quarter one year earlier, all metrics were higher, with gross margin also improving.
Monitor the trajectory of cost of revenue relative to revenue, as its stability in the current quarter was a key factor in margin expansion.