AbbVie Inc. stock research
FY2023 Q3
AbbVie (ABBV) Gross Margin — Quarter Ended Sep 30, 2023
Revenue was stable compared to the prior quarter but lower than the same quarter last year. Gross profit and gross margin both weakened versus the prior quarter and the year-ago quarter, as cost of revenue increased relative to revenue.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue was stable compared to the prior quarter but lower than the same quarter last year. Gross profit and gross margin both weakened versus the prior quarter and the year-ago quarter, as cost of revenue increased relative to revenue.
- The most observable driver of the gross margin decline is the increase in cost of revenue as a share of revenue, which compressed gross profit despite stable revenue.
- Compared to the immediately preceding quarter, gross margin weakened significantly. Compared to the same quarter one year earlier, gross margin also declined.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
53.4%
Gross profit
$7.4B
Revenue
$13.9B
Cost of revenue
$6.5B
Quarter-over-quarter change
-16.0 pts
Year-over-year change
-12.7 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $12.2B | $8.2B | $4.0B | 67.4% |
| Jun 30, 2023 | $13.9B | $9.6B | $4.2B | 69.4% |
| Sep 30, 2023 | $13.9B | $7.4B | $6.5B | 53.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-16.0 pts
Year-over-year change
Sep 30, 2022
-12.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of the gross margin decline is the increase in cost of revenue as a share of revenue, which compressed gross profit despite stable revenue.
Compared to the immediately preceding quarter, gross margin weakened significantly. Compared to the same quarter one year earlier, gross margin also declined.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.