CO

Cencora, Inc. stock research

Jun 30, 2023

FY2023 Q3

Cencora (COR) Gross Margin — Quarter Ended Jun 30, 2023

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin was unchanged from a year ago but slightly lower than the prior quarter.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q3

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin was unchanged from a year ago but slightly lower than the prior quarter.

  • Gross margin remained stable compared to the same quarter last year, as revenue and cost of revenue both increased. The sequential decline in gross margin reflects a higher proportion of cost of revenue relative to revenue.
  • Compared to the prior quarter, revenue was higher while gross profit was unchanged, resulting in a lower gross margin. Compared to the same quarter last year, revenue and gross profit were both higher, with gross margin unchanged.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

3.4%

Gross profit

$2.3B

Revenue

$66.9B

Cost of revenue

$64.7B

Quarter-over-quarter change

-0.2 pts

Year-over-year change

+0.0 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$63.5B$2.3B$61.2B3.6%
Jun 30, 2023$66.9B$2.3B$64.7B3.4%

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

+0.0 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

Gross margin remained stable compared to the same quarter last year, as revenue and cost of revenue both increased. The sequential decline in gross margin reflects a higher proportion of cost of revenue relative to revenue.

Compared to the prior quarter, revenue was higher while gross profit was unchanged, resulting in a lower gross margin. Compared to the same quarter last year, revenue and gross profit were both higher, with gross margin unchanged.

Monitor the trend in gross margin as revenue and cost of revenue continue to grow.