Veralto (VLTO) Gross Margin — Quarter Ended Sep 27, 2024

Revenue held steady while gross profit rose year-over-year but dipped sequentially, causing gross margin to strengthen compared to the prior year and weaken from the previous quarter.

Gross margin takeaway

Quarter ended Sep 27, 2024 · FY2024 Q3

Revenue held steady while gross profit rose year-over-year but dipped sequentially, causing gross margin to strengthen compared to the prior year and weaken from the previous quarter.

The year-over-year improvement in gross margin is primarily due to a lower cost of revenue relative to stable revenue.
Compared to the same quarter last year, gross margin improved. Sequentially, gross margin weakened slightly.

Gross margin snapshot

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

Gross margin

59.6%

Gross profit

$783.0M

Revenue

$1.3B

Cost of revenue

$531.0M

Quarter-over-quarter change

-0.5 pts

Year-over-year change

+2.0 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	$1.3B	$746.0M	$542.0M	57.9%
Mar 29, 2024	$1.2B	$747.0M	$499.0M	60.0%
Jun 28, 2024	$1.3B	$774.0M	$514.0M	60.1%
Sep 27, 2024	$1.3B	$783.0M	$531.0M	59.6%

Quarterly comparisons

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

Previous-quarter change

Jun 28, 2024

-0.5 pts

Year-over-year change

Sep 29, 2023

+2.0 pts

What the margin says

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

The year-over-year improvement in gross margin is primarily due to a lower cost of revenue relative to stable revenue.

Compared to the same quarter last year, gross margin improved. Sequentially, gross margin weakened slightly.

Monitor cost of revenue trends, as the sequential increase narrowed gross margin.