Sysco Corporation stock research
FY2025 Q1
Sysco (SYY) Gross Margin — Quarter Ended Sep 28, 2024
The current quarter's gross margin weakened compared to both the prior quarter and the same quarter last year. Revenue was slightly lower than the prior quarter but higher than a year ago, while gross profit remained stable sequentially and higher year over year, with cost of revenue mirroring those patterns.
Gross margin takeaway
Quarter ended Sep 28, 2024 · FY2025 Q1
The current quarter's gross margin weakened compared to both the prior quarter and the same quarter last year. Revenue was slightly lower than the prior quarter but higher than a year ago, while gross profit remained stable sequentially and higher year over year, with cost of revenue mirroring those patterns.
- The strongest observable margin driver is the relationship between cost of revenue and revenue: sequentially, cost of revenue was unchanged despite a slight revenue decline, and year over year, cost of revenue grew at a pace that outpaced revenue growth, compressing the margin.
- Compared to the prior quarter, gross margin weakened as revenue decreased while cost of revenue held steady. Compared to the same quarter last year, gross margin also weakened, with revenue growth outpaced by the increase in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
18.3%
Gross profit
$3.8B
Revenue
$20.5B
Cost of revenue
$16.7B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
-0.3 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 30, 2023 | $19.3B | $3.5B | $15.8B | 18.2% |
| Mar 30, 2024 | $19.4B | $3.6B | $15.8B | 18.6% |
| Jun 29, 2024 | $20.6B | $3.8B | $16.7B | 18.7% |
| Sep 28, 2024 | $20.5B | $3.8B | $16.7B | 18.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 29, 2024
-0.3 pts
Year-over-year change
Sep 30, 2023
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between cost of revenue and revenue: sequentially, cost of revenue was unchanged despite a slight revenue decline, and year over year, cost of revenue grew at a pace that outpaced revenue growth, compressing the margin.
Compared to the prior quarter, gross margin weakened as revenue decreased while cost of revenue held steady. Compared to the same quarter last year, gross margin also weakened, with revenue growth outpaced by the increase in cost of revenue.
Monitor the trend in cost of revenue relative to revenue, as any further imbalance could continue to pressure gross margin.