The Boeing Company stock research
FY2023 Q1
The Boeing (BA) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both increased compared to the same quarter one year earlier, while cost of revenue also rose. Gross margin improved significantly from the prior year quarter and also strengthened relative to the immediately preceding quarter.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit both increased compared to the same quarter one year earlier, while cost of revenue also rose. Gross margin improved significantly from the prior year quarter and also strengthened relative to the immediately preceding quarter.
- The strongest observable margin driver is the gross profit amount, which remained stable sequentially despite a decline in revenue, indicating that cost of revenue decreased at a faster rate than revenue. This allowed gross margin to improve from the prior quarter.
- Compared to the immediately preceding quarter, revenue was lower but gross profit was essentially unchanged, resulting in a higher gross margin. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
10.7%
Gross profit
$1.9B
Revenue
$17.9B
Cost of revenue
$16.0B
Quarter-over-quarter change
n/a
Year-over-year change
+8.2 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 | $17.9B | $1.9B | $16.0B | 10.7% |
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
+8.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the gross profit amount, which remained stable sequentially despite a decline in revenue, indicating that cost of revenue decreased at a faster rate than revenue. This allowed gross margin to improve from the prior quarter.
Compared to the immediately preceding quarter, revenue was lower but gross profit was essentially unchanged, resulting in a higher gross margin. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.
Monitor the trajectory of cost of revenue relative to revenue, as the current quarter's improvement in gross margin was driven by a proportionally larger decline in costs.