Amgen Inc. stock research
FY2023 Q2
Amgen (AMGN) Gross Margin — Quarter Ended Jun 30, 2023
For the quarter ended June 30, 2023, revenue and gross profit both increased from the prior quarter, while cost of revenue rose slightly less, resulting in an improved gross margin. However, compared to the same quarter last year, gross margin was lower despite higher revenue, as cost of revenue grew more proportionally.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
For the quarter ended June 30, 2023, revenue and gross profit both increased from the prior quarter, while cost of revenue rose slightly less, resulting in an improved gross margin. However, compared to the same quarter last year, gross margin was lower despite higher revenue, as cost of revenue grew more proportionally.
- The most observable driver of the sequential margin improvement was the increase in revenue outpacing the increase in cost of revenue. This relationship is the primary factor in the margin expansion.
- Gross margin strengthened from the immediately preceding quarter but weakened from the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
74.0%
Gross profit
$5.2B
Revenue
$7.0B
Cost of revenue
$1.8B
Quarter-over-quarter change
+2.2 pts
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% |
| Jun 30, 2023 | $7.0B | $5.2B | $1.8B | 74.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+2.2 pts
Year-over-year change
Jun 30, 2022
-3.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of the sequential margin improvement was the increase in revenue outpacing the increase in cost of revenue. This relationship is the primary factor in the margin expansion.
Gross margin strengthened from the immediately preceding quarter but weakened from the same quarter one year earlier.
Monitor the trajectory of cost of revenue relative to revenue, as the year-over-year comparison shows a larger increase in costs.