Cisco Systems, Inc. stock research
FY2023 Q2
Cisco Systems (CSCO) Gross Margin — Quarter Ended Jan 28, 2023
Revenue was unchanged from the prior quarter, while gross profit increased and cost of revenue declined, leading to an improved gross margin. Compared with the same quarter a year ago, revenue grew but cost of revenue rose more sharply, resulting in a weaker gross margin.
Gross margin takeaway
Quarter ended Jan 28, 2023 · FY2023 Q2
Revenue was unchanged from the prior quarter, while gross profit increased and cost of revenue declined, leading to an improved gross margin. Compared with the same quarter a year ago, revenue grew but cost of revenue rose more sharply, resulting in a weaker gross margin.
- The decrease in cost of revenue relative to revenue from the prior quarter was the most notable change directly associated with the rise in gross margin.
- Gross margin improved from the immediately preceding quarter but weakened compared with the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
62.0%
Gross profit
$8.4B
Revenue
$13.6B
Cost of revenue
$5.2B
Quarter-over-quarter change
n/a
Year-over-year change
-1.3 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 |
|---|---|---|---|---|
| Jan 28, 2023 | $13.6B | $8.4B | $5.2B | 62.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Jan 29, 2022
-1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decrease in cost of revenue relative to revenue from the prior quarter was the most notable change directly associated with the rise in gross margin.
Gross margin improved from the immediately preceding quarter but weakened compared with the same quarter one year earlier.
Inventory levels, which increased from the prior fiscal year-end according to the filing, are a concrete item to monitor for potential impact on future cost of revenue.