ConocoPhillips stock research
FY2023 Q3
ConocoPhillips (COP) Gross Margin — Quarter Ended Sep 30, 2023
In the current quarter, revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose; gross margin decreased slightly. Compared to the same quarter a year ago, revenue was lower but gross profit was higher, and cost of revenue was significantly lower, resulting in a higher gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
In the current quarter, revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose; gross margin decreased slightly. Compared to the same quarter a year ago, revenue was lower but gross profit was higher, and cost of revenue was significantly lower, resulting in a higher gross margin.
- The strongest observable margin driver is the reduction in cost of revenue from a year ago, which allowed gross profit to increase despite lower revenue, lifting the margin.
- Gross margin in the current quarter is higher than the same quarter a year ago but lower than the prior quarter. Revenue and cost of revenue both increased sequentially, while year-over-year revenue declined but cost of revenue declined more sharply.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
56.0%
Gross profit
$7.1B
Revenue
$12.6B
Cost of revenue
$5.5B
Quarter-over-quarter change
-2.1 pts
Year-over-year change
+13.9 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 | $12.0B | $5.8B | $6.1B | 48.7% |
| Jun 30, 2023 | $11.0B | $6.4B | $4.6B | 58.1% |
| Sep 30, 2023 | $12.6B | $7.1B | $5.5B | 56.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-2.1 pts
Year-over-year change
Sep 30, 2022
+13.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the reduction in cost of revenue from a year ago, which allowed gross profit to increase despite lower revenue, lifting the margin.
Gross margin in the current quarter is higher than the same quarter a year ago but lower than the prior quarter. Revenue and cost of revenue both increased sequentially, while year-over-year revenue declined but cost of revenue declined more sharply.
Monitor the trend in cost of revenue relative to revenue, as its movement sequentially drove the margin lower despite a favorable year-over-year comparison.