Cisco Systems, Inc. stock research
FY2023 Q3
Cisco Systems (CSCO) Gross Margin — Quarter Ended Apr 29, 2023
Revenue and gross profit were higher than the previous quarter, while cost of revenue increased only slightly, resulting in an improved gross margin. Compared to the same quarter a year ago, revenue and gross profit were also higher, and the gross margin remained relatively stable.
Gross margin takeaway
Quarter ended Apr 29, 2023 · FY2023 Q3
Revenue and gross profit were higher than the previous quarter, while cost of revenue increased only slightly, resulting in an improved gross margin. Compared to the same quarter a year ago, revenue and gross profit were also higher, and the gross margin remained relatively stable.
- The sequential gross margin improvement reflected a larger increase in revenue relative to the increase in cost of revenue, while the year-over-year gross margin was essentially unchanged.
- The gross margin was higher than the previous quarter but similar to the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
63.4%
Gross profit
$9.2B
Revenue
$14.6B
Cost of revenue
$5.3B
Quarter-over-quarter change
+1.4 pts
Year-over-year change
+0.1 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 |
|---|---|---|---|---|
| Jan 28, 2023 | $13.6B | $8.4B | $5.2B | 62.0% |
| Apr 29, 2023 | $14.6B | $9.2B | $5.3B | 63.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 28, 2023
+1.4 pts
Year-over-year change
Apr 30, 2022
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential gross margin improvement reflected a larger increase in revenue relative to the increase in cost of revenue, while the year-over-year gross margin was essentially unchanged.
The gross margin was higher than the previous quarter but similar to the same quarter one year earlier.
Inventory levels and supply chain dynamics, as referenced in the filing's liquidity discussion, should be monitored.