Amazon.com, Inc. stock research
FY2023 Q3
Amazon.com (AMZN) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and gross profit were higher than both the immediately preceding quarter and the same quarter one year earlier. Cost of revenue was higher than the prior quarter but lower than the year-ago period, resulting in a gross margin that weakened from the prior quarter but improved compared to the same quarter last year.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue and gross profit were higher than both the immediately preceding quarter and the same quarter one year earlier. Cost of revenue was higher than the prior quarter but lower than the year-ago period, resulting in a gross margin that weakened from the prior quarter but improved compared to the same quarter last year.
- The year-over-year gross margin improvement is the strongest observable trend, driven by revenue growth outpacing the change in cost of revenue relative to the prior year.
- Compared to the prior quarter, gross margin weakened as cost of revenue increased more in proportion than revenue. Relative to the same quarter last year, gross margin was higher, supported by a proportionally larger increase in revenue compared to the increase in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.6%
Gross profit
$68.1B
Revenue
$143.1B
Cost of revenue
$75.0B
Quarter-over-quarter change
-0.8 pts
Year-over-year change
n/a
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 | $127.4B | $59.6B | $67.8B | 46.8% |
| Jun 30, 2023 | $134.4B | $65.0B | $69.4B | 48.4% |
| Sep 30, 2023 | $143.1B | $68.1B | $75.0B | 47.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.8 pts
Year-over-year change
Year-ago quarter unavailable
n/a
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year gross margin improvement is the strongest observable trend, driven by revenue growth outpacing the change in cost of revenue relative to the prior year.
Compared to the prior quarter, gross margin weakened as cost of revenue increased more in proportion than revenue. Relative to the same quarter last year, gross margin was higher, supported by a proportionally larger increase in revenue compared to the increase in cost of revenue.
Monitor whether the sequential weakening of gross margin reverses in the coming quarter.