Chevron Corporation stock research
FY2023 Q3
Chevron (CVX) Gross Margin — Quarter Ended Sep 30, 2023
Revenue, gross profit, and cost of revenue all increased from the prior quarter but decreased from the same quarter a year earlier. The gross margin weakened compared to both periods, as cost of revenue grew faster than revenue relative to the prior quarter and remained elevated relative to the year-ago level.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue, gross profit, and cost of revenue all increased from the prior quarter but decreased from the same quarter a year earlier. The gross margin weakened compared to both periods, as cost of revenue grew faster than revenue relative to the prior quarter and remained elevated relative to the year-ago level.
- The most observable driver of the gross margin decline is the proportionally larger increase in cost of revenue relative to revenue when comparing the current quarter to the prior quarter, and the sustained higher cost base versus the year-ago quarter.
- Revenue and gross profit were higher than the preceding quarter but lower than the same quarter one year earlier. Cost of revenue followed the same pattern, while gross margin was lower than both the prior quarter and the year-ago quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.7%
Gross profit
$19.6B
Revenue
$51.9B
Cost of revenue
$32.3B
Quarter-over-quarter change
-0.9 pts
Year-over-year change
-1.2 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 | $48.8B | $19.4B | $29.4B | 39.8% |
| Jun 30, 2023 | $47.2B | $18.2B | $29.0B | 38.6% |
| Sep 30, 2023 | $51.9B | $19.6B | $32.3B | 37.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.9 pts
Year-over-year change
Sep 30, 2022
-1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of the gross margin decline is the proportionally larger increase in cost of revenue relative to revenue when comparing the current quarter to the prior quarter, and the sustained higher cost base versus the year-ago quarter.
Revenue and gross profit were higher than the preceding quarter but lower than the same quarter one year earlier. Cost of revenue followed the same pattern, while gross margin was lower than both the prior quarter and the year-ago quarter.
Monitor the trajectory of cost of revenue relative to revenue, as gross margin has declined in both sequential and year-over-year comparisons.