The Boeing Company stock research
FY2023 Q2
The Boeing (BA) Gross Margin — Quarter Ended Jun 30, 2023
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was lower than a year ago but stable versus the prior quarter. Cost of revenue grew more than revenue on both comparisons, causing gross margin to weaken sequentially and year-over-year.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was lower than a year ago but stable versus the prior quarter. Cost of revenue grew more than revenue on both comparisons, causing gross margin to weaken sequentially and year-over-year.
- The strongest observable margin driver is the relationship between cost of revenue and revenue: cost of revenue increased at a faster rate than revenue, compressing gross margin.
- Compared to the prior quarter, gross margin weakened as revenue rose but cost of revenue rose more. Compared to the same quarter last year, gross margin also weakened, with revenue higher but cost of revenue substantially higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
9.8%
Gross profit
$1.9B
Revenue
$19.8B
Cost of revenue
$17.8B
Quarter-over-quarter change
-0.9 pts
Year-over-year change
-2.9 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% |
| Jun 30, 2023 | $19.8B | $1.9B | $17.8B | 9.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-0.9 pts
Year-over-year change
Jun 30, 2022
-2.9 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 cost of revenue and revenue: cost of revenue increased at a faster rate than revenue, compressing gross margin.
Compared to the prior quarter, gross margin weakened as revenue rose but cost of revenue rose more. Compared to the same quarter last year, gross margin also weakened, with revenue higher but cost of revenue substantially higher.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth is the primary factor behind the margin decline.