Cisco Systems (CSCO) Gross Margin — Quarter Ended Jul 29, 2023

Revenue increased compared to the prior quarter and the same quarter last year. Gross profit also rose, and cost of revenue increased at a slower pace, resulting in an improved gross margin for the quarter.

Gross margin takeaway

Quarter ended Jul 29, 2023 · FY2023 Q4

The improvement in gross margin is the strongest observable driver this quarter, supported by revenue growth outpacing cost increases.
Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was also higher.

Gross margin snapshot

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

Gross margin

64.1%

Gross profit

$9.7B

Revenue

$15.2B

Cost of revenue

$5.5B

Quarter-over-quarter change

+0.8 pts

Year-over-year change

+2.9 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
Jan 28, 2023	$13.6B	$8.4B	$5.2B	62.0%
Apr 29, 2023	$14.6B	$9.2B	$5.3B	63.4%
Jul 29, 2023	$15.2B	$9.7B	$5.5B	64.1%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Apr 29, 2023

+0.8 pts

Year-over-year change

Jul 30, 2022

+2.9 pts

What the margin says

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

The improvement in gross margin is the strongest observable driver this quarter, supported by revenue growth outpacing cost increases.

Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was also higher.

Monitor supply chain and component cost risks as discussed in the management analysis, which could affect future margins.