Caterpillar Inc. stock research
FY2023 Q2
Caterpillar (CAT) Gross Margin — Quarter Ended Jun 30, 2023
Revenue grew and cost of revenue increased at a slower pace, resulting in a higher gross profit and gross margin compared to the same quarter last year. Versus the prior quarter, revenue and gross profit both rose, but gross margin narrowed slightly as cost of revenue increased proportionally more.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue grew and cost of revenue increased at a slower pace, resulting in a higher gross profit and gross margin compared to the same quarter last year. Versus the prior quarter, revenue and gross profit both rose, but gross margin narrowed slightly as cost of revenue increased proportionally more.
- Gross margin improved relative to the year-ago quarter, with revenue growth outpacing cost of revenue increases. Sequentially, the slight weakening in margin was driven by a marginally higher proportion of cost of revenue relative to revenue.
- Gross margin weakened marginally from the prior quarter but strengthened significantly versus the same quarter last year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.1%
Gross profit
$6.3B
Revenue
$17.3B
Cost of revenue
$11.1B
Quarter-over-quarter change
-0.2 pts
Year-over-year change
+6.1 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 | $15.9B | $5.8B | $10.1B | 36.3% |
| Jun 30, 2023 | $17.3B | $6.3B | $11.1B | 36.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-0.2 pts
Year-over-year change
Jun 30, 2022
+6.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved relative to the year-ago quarter, with revenue growth outpacing cost of revenue increases. Sequentially, the slight weakening in margin was driven by a marginally higher proportion of cost of revenue relative to revenue.
Gross margin weakened marginally from the prior quarter but strengthened significantly versus the same quarter last year.
Monitor the trajectory of cost of revenue relative to revenue, as the slight sequential increase in its proportion warrants attention.