Quarter-over-Quarter

Quarter-over-quarter means comparing a number with the previous quarter. In simple terms, quarter-over-quarter shows how something changed from one quarter to the next. Quarter-over-quarter comparisons are important because they show recent momentum. Investors use them to see whether revenue, profit, demand, or margins are improving or weakening in the short term. For example, if a company’s revenue rises from $5 billion last quarter to $5.5 billion this quarter, revenue increased 10% quarter-over-quarter. Quarter-over-quarter can be affected by seasonality. Some businesses naturally perform better or worse in certain quarters.