CVS Health Corporation stock research
FY2023 Q1
CVS Health (CVS) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both increased compared with the previous quarter and the same quarter a year ago, while cost of revenue was slightly lower than the prior quarter but higher than the year-ago period. Gross margin improved sequentially but weakened relative to the same quarter last year.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit both increased compared with the previous quarter and the same quarter a year ago, while cost of revenue was slightly lower than the prior quarter but higher than the year-ago period. Gross margin improved sequentially but weakened relative to the same quarter last year.
- The sequential improvement in gross margin was driven by a lower cost of revenue relative to the increase in revenue. This relationship was the most observable factor behind the margin change.
- Compared to the immediately preceding quarter, gross margin improved as cost of revenue declined while revenue rose. Compared to the same quarter one year earlier, gross margin weakened as cost of revenue increased more than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.7%
Gross profit
$33.8B
Revenue
$85.3B
Cost of revenue
$51.5B
Quarter-over-quarter change
n/a
Year-over-year change
-1.1 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $85.3B | $33.8B | $51.5B | 39.7% |
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
Mar 31, 2022
-1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was driven by a lower cost of revenue relative to the increase in revenue. This relationship was the most observable factor behind the margin change.
Compared to the immediately preceding quarter, gross margin improved as cost of revenue declined while revenue rose. Compared to the same quarter one year earlier, gross margin weakened as cost of revenue increased more than revenue.
Monitor the trend in cost of revenue, which decreased sequentially but increased year-over-year, as it may influence future margin stability.