Accenture plc stock research
FY2023 Q3
Accenture (ACN) Gross Margin — Quarter Ended May 31, 2023
Revenue increased compared to both the prior quarter and the same quarter a year earlier. Gross profit improved versus both periods, while cost of revenue rose relative to the prior quarter and the year-ago quarter, leading to a higher gross margin this quarter.
Gross margin takeaway
Quarter ended May 31, 2023 · FY2023 Q3
Revenue increased compared to both the prior quarter and the same quarter a year earlier. Gross profit improved versus both periods, while cost of revenue rose relative to the prior quarter and the year-ago quarter, leading to a higher gross margin this quarter.
- The increase in gross margin was driven by gross profit growing faster than revenue, as cost of revenue rose at a slower rate. The year-ago comparison shows a similar pattern, with gross margin improving year over year.
- Compared to the prior quarter, revenue, gross profit, and gross margin are all higher, while cost of revenue is unchanged. Relative to the same quarter a year ago, revenue, gross profit, and cost of revenue are higher, with gross margin also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.4%
Gross profit
$5.5B
Revenue
$16.6B
Cost of revenue
$11.0B
Quarter-over-quarter change
+2.8 pts
Year-over-year change
+0.5 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 |
|---|---|---|---|---|
| Feb 28, 2023 | $15.8B | $4.8B | $11.0B | 30.6% |
| May 31, 2023 | $16.6B | $5.5B | $11.0B | 33.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 28, 2023
+2.8 pts
Year-over-year change
May 31, 2022
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The increase in gross margin was driven by gross profit growing faster than revenue, as cost of revenue rose at a slower rate. The year-ago comparison shows a similar pattern, with gross margin improving year over year.
Compared to the prior quarter, revenue, gross profit, and gross margin are all higher, while cost of revenue is unchanged. Relative to the same quarter a year ago, revenue, gross profit, and cost of revenue are higher, with gross margin also higher.
Monitor the trend in cost of revenue relative to revenue, as cost of revenue remained flat quarter over quarter despite higher revenue.