Abbott Laboratories stock research
FY2023 Q3
Abbott Laboratories (ABT) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and gross profit both decreased slightly compared to the prior quarter and the same quarter last year, while cost of revenue remained relatively stable. Gross margin weakened marginally versus both periods, reflecting a modestly higher cost of revenue relative to revenue.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue and gross profit both decreased slightly compared to the prior quarter and the same quarter last year, while cost of revenue remained relatively stable. Gross margin weakened marginally versus both periods, reflecting a modestly higher cost of revenue relative to revenue.
- The strongest observable margin driver is the relationship between cost of revenue and gross profit, as cost of revenue stayed nearly stable while gross profit declined slightly, leading to a modest margin compression.
- Compared to the immediately preceding quarter, revenue was slightly higher but gross margin was lower, driven by proportionally higher cost of revenue. Versus the same quarter one year earlier, both revenue and gross profit were lower, while gross margin also weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
54.6%
Gross profit
$5.5B
Revenue
$10.1B
Cost of revenue
$4.6B
Quarter-over-quarter change
-0.5 pts
Year-over-year change
-0.9 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 | $9.7B | $5.4B | $4.3B | 55.6% |
| Jun 30, 2023 | $10.0B | $5.5B | $4.5B | 55.1% |
| Sep 30, 2023 | $10.1B | $5.5B | $4.6B | 54.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.5 pts
Year-over-year change
Sep 30, 2022
-0.9 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 gross profit, as cost of revenue stayed nearly stable while gross profit declined slightly, leading to a modest margin compression.
Compared to the immediately preceding quarter, revenue was slightly higher but gross margin was lower, driven by proportionally higher cost of revenue. Versus the same quarter one year earlier, both revenue and gross profit were lower, while gross margin also weakened.
Monitor the trend in gross profit relative to cost of revenue, as any persistent divergence could signal further margin pressure.