Amgen Inc. stock research
FY2023 Q1
Amgen (AMGN) Gross Margin — Quarter Ended Mar 31, 2023
Revenue declined from the immediately preceding quarter and was slightly lower than the same quarter one year earlier. Gross profit decreased in both comparisons, while cost of revenue remained steady sequentially but increased year-over-year, resulting in a weakened gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue declined from the immediately preceding quarter and was slightly lower than the same quarter one year earlier. Gross profit decreased in both comparisons, while cost of revenue remained steady sequentially but increased year-over-year, resulting in a weakened gross margin.
- The most noticeable driver was the combination of declining revenue with stable cost of revenue sequentially, which compressed gross margin. Year-over-year, higher cost of revenue alongside lower revenue contributed to the margin decline.
- Gross margin weakened compared to both the prior quarter and the year-ago quarter, reflecting lower revenue relative to cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
71.8%
Gross profit
$4.4B
Revenue
$6.1B
Cost of revenue
$1.7B
Quarter-over-quarter change
n/a
Year-over-year change
-3.1 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 | $6.1B | $4.4B | $1.7B | 71.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
-3.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most noticeable driver was the combination of declining revenue with stable cost of revenue sequentially, which compressed gross margin. Year-over-year, higher cost of revenue alongside lower revenue contributed to the margin decline.
Gross margin weakened compared to both the prior quarter and the year-ago quarter, reflecting lower revenue relative to cost of revenue.
Monitor whether cost of revenue continues to remain stable or increase as revenue trends evolve.