Danaher Corporation stock research
FY2023 Q3
Danaher (DHR) Gross Margin — Quarter Ended Sep 29, 2023
Revenue decreased while gross profit was unchanged from the prior quarter, resulting in an improved gross margin. Compared to the same quarter one year earlier, both revenue and gross profit were lower, and gross margin weakened.
Gross margin takeaway
Quarter ended Sep 29, 2023 · FY2023 Q3
Revenue decreased while gross profit was unchanged from the prior quarter, resulting in an improved gross margin. Compared to the same quarter one year earlier, both revenue and gross profit were lower, and gross margin weakened.
- The sequential margin improvement was accompanied by a decrease in cost of revenue that was proportionally larger than the decline in revenue, while gross profit remained stable.
- Revenue was lower than both the preceding quarter and the year-ago quarter. Gross profit was unchanged versus the preceding quarter but lower compared to the year-ago quarter. Gross margin improved from the preceding quarter but weakened from the year-ago quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
58.2%
Gross profit
$3.3B
Revenue
$5.6B
Cost of revenue
$2.3B
Quarter-over-quarter change
+2.1 pts
Year-over-year change
-1.6 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% |
| Sep 29, 2023 | $5.6B | $3.3B | $2.3B | 58.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+2.1 pts
Year-over-year change
Sep 30, 2022
-1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential margin improvement was accompanied by a decrease in cost of revenue that was proportionally larger than the decline in revenue, while gross profit remained stable.
Revenue was lower than both the preceding quarter and the year-ago quarter. Gross profit was unchanged versus the preceding quarter but lower compared to the year-ago quarter. Gross margin improved from the preceding quarter but weakened from the year-ago quarter.
Monitor the trajectory of cost of revenue relative to revenue, as its movement has a significant effect on margin performance.