Amgen Inc. stock research
FY2023 Q3
Amgen (AMGN) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue was essentially unchanged, resulting in a slightly lower gross margin. Relative to the same quarter a year ago, revenue increased but gross profit was flat, as a higher cost of revenue led to a weakened gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue was essentially unchanged, resulting in a slightly lower gross margin. Relative to the same quarter a year ago, revenue increased but gross profit was flat, as a higher cost of revenue led to a weakened gross margin.
- The strongest observable margin driver is the relationship between rising cost of revenue and flat gross profit year-over-year, which compressed the gross margin. This indicates that revenue growth was fully offset by cost increases.
- Sequentially, gross margin declined slightly as revenue fell while cost of revenue held steady. Year-over-year, gross margin weakened more notably because cost of revenue grew faster than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
73.8%
Gross profit
$5.1B
Revenue
$6.9B
Cost of revenue
$1.8B
Quarter-over-quarter change
-0.2 pts
Year-over-year change
-2.3 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% |
| Sep 30, 2023 | $6.9B | $5.1B | $1.8B | 73.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.2 pts
Year-over-year change
Sep 30, 2022
-2.3 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 rising cost of revenue and flat gross profit year-over-year, which compressed the gross margin. This indicates that revenue growth was fully offset by cost increases.
Sequentially, gross margin declined slightly as revenue fell while cost of revenue held steady. Year-over-year, gross margin weakened more notably because cost of revenue grew faster than revenue.
Monitor the trajectory of cost of revenue relative to revenue, as its year-over-year growth has outpaced revenue and weakened margin.