Danaher Corporation stock research
FY2023 Q2
Danaher (DHR) Gross Margin — Quarter Ended Jun 30, 2023
Revenue was stable compared to the preceding quarter but lower than the same quarter one year earlier. Gross profit and gross margin both weakened relative to both prior periods, largely driven by a higher cost of revenue.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue was stable compared to the preceding quarter but lower than the same quarter one year earlier. Gross profit and gross margin both weakened relative to both prior periods, largely driven by a higher cost of revenue.
- Cost of revenue increased compared to the prior quarter, directly compressing gross profit and margin. This cost pressure is the strongest observable driver of margin movement in the current period.
- Gross margin is lower than both the immediately preceding quarter and the same quarter one year earlier. Revenue is unchanged from the prior quarter but lower year over year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
56.1%
Gross profit
$3.3B
Revenue
$5.9B
Cost of revenue
$2.6B
Quarter-over-quarter change
-5.4 pts
Year-over-year change
-4.1 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 | $5.9B | $3.7B | $2.3B | 61.6% |
| Jun 30, 2023 | $5.9B | $3.3B | $2.6B | 56.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-5.4 pts
Year-over-year change
Jul 1, 2022
-4.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Cost of revenue increased compared to the prior quarter, directly compressing gross profit and margin. This cost pressure is the strongest observable driver of margin movement in the current period.
Gross margin is lower than both the immediately preceding quarter and the same quarter one year earlier. Revenue is unchanged from the prior quarter but lower year over year.
Monitor the trajectory of cost of revenue, as its increase in the current quarter directly reduced gross margin.