Boston Scientific Corporation stock research
FY2023 Q2
Boston Scientific (BSX) Gross Margin — Quarter Ended Jun 30, 2023
Revenue grew from both the prior quarter and the same quarter a year ago, and cost of revenue increased at a slower pace, allowing gross profit to expand and gross margin to improve. Gross margin strengthened sequentially and year-over-year, reflecting a favorable relationship between revenue growth and cost control.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue grew from both the prior quarter and the same quarter a year ago, and cost of revenue increased at a slower pace, allowing gross profit to expand and gross margin to improve. Gross margin strengthened sequentially and year-over-year, reflecting a favorable relationship between revenue growth and cost control.
- Gross margin improved sequentially and year-over-year, driven by revenue growth outpacing the increase in cost of revenue. The strongest observable driver is the consistent expansion of gross margin across both comparison periods.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, with gross margin improved. Relative to the same quarter one year earlier, revenue, gross profit, and cost of revenue were also higher, and gross margin was higher as well.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.6%
Gross profit
$2.5B
Revenue
$3.6B
Cost of revenue
$1.1B
Quarter-over-quarter change
+1.3 pts
Year-over-year change
+1.8 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 | $3.4B | $2.3B | $1.0B | 69.3% |
| Jun 30, 2023 | $3.6B | $2.5B | $1.1B | 70.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.3 pts
Year-over-year change
Jun 30, 2022
+1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved sequentially and year-over-year, driven by revenue growth outpacing the increase in cost of revenue. The strongest observable driver is the consistent expansion of gross margin across both comparison periods.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, with gross margin improved. Relative to the same quarter one year earlier, revenue, gross profit, and cost of revenue were also higher, and gross margin was higher as well.
Monitor the trend in cost of revenue relative to revenue, as any change in this relationship could directly affect gross margin stability.