Amgen Inc. stock research
FY2023 Q4
Amgen (AMGN) Gross Margin — Quarter Ended Dec 31, 2023
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit remained stable. Cost of revenue rose substantially, causing gross margin to weaken.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit remained stable. Cost of revenue rose substantially, causing gross margin to weaken.
- The most observable driver of gross margin change is the increase in cost of revenue, which outpaced revenue growth and compressed margin.
- Compared to the immediately preceding quarter, gross margin was lower; compared to the same quarter one year earlier, gross margin was also lower. Revenue was higher in both comparisons, but cost of revenue increased more sharply.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
62.0%
Gross profit
$5.1B
Revenue
$8.2B
Cost of revenue
$3.1B
Quarter-over-quarter change
-11.8 pts
Year-over-year change
-12.4 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% |
| Dec 31, 2023 | $8.2B | $5.1B | $3.1B | 62.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-11.8 pts
Year-over-year change
Dec 31, 2022
-12.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of gross margin change is the increase in cost of revenue, which outpaced revenue growth and compressed margin.
Compared to the immediately preceding quarter, gross margin was lower; compared to the same quarter one year earlier, gross margin was also lower. Revenue was higher in both comparisons, but cost of revenue increased more sharply.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.