DuPont de Nemours, Inc. stock research
FY2023 Q2
DuPont de Nemours (DD) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue remained unchanged, resulting in a slightly improved gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all lower, leading to a weakened gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue remained unchanged, resulting in a slightly improved gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all lower, leading to a weakened gross margin.
- The gross margin improvement from the prior quarter was driven by revenue growth with steady cost of revenue, allowing a larger portion of revenue to flow into gross profit.
- Revenue, gross profit, and cost of revenue all decreased year over year, with gross margin declining from the prior-year level. Sequentially, revenue and gross profit rose while cost of revenue held flat, and gross margin showed a slight increase.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.4%
Gross profit
$1.1B
Revenue
$3.1B
Cost of revenue
$2.0B
Quarter-over-quarter change
+0.1 pts
Year-over-year change
-0.9 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $3.0B | $1.0B | $2.0B | 34.3% |
| Jun 30, 2023 | $3.1B | $1.1B | $2.0B | 34.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+0.1 pts
Year-over-year change
Jun 30, 2022
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement from the prior quarter was driven by revenue growth with steady cost of revenue, allowing a larger portion of revenue to flow into gross profit.
Revenue, gross profit, and cost of revenue all decreased year over year, with gross margin declining from the prior-year level. Sequentially, revenue and gross profit rose while cost of revenue held flat, and gross margin showed a slight increase.
Monitor whether revenue growth can continue without a proportional increase in cost of revenue to sustain or improve gross margin.