FactSet Research Systems Inc. stock research
FY2023 Q3
FactSet Research Systems (FDS) Gross Margin — Quarter Ended May 31, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved from the prior quarter but was slightly lower than the year-ago quarter.
Gross margin takeaway
Quarter ended May 31, 2023 · FY2023 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved from the prior quarter but was slightly lower than the year-ago quarter.
- The gross margin improvement relative to the preceding quarter was driven by a stronger increase in gross profit compared to cost of revenue.
- Compared to the prior quarter, revenue, gross profit, and gross margin all improved. Compared to the same quarter a year ago, revenue and gross profit were higher, while gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
54.4%
Gross profit
$288.1M
Revenue
$529.8M
Cost of revenue
$241.7M
Quarter-over-quarter change
+1.1 pts
Year-over-year change
-0.1 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 |
|---|---|---|---|---|
| Feb 28, 2023 | $515.1M | $274.3M | $240.8M | 53.2% |
| May 31, 2023 | $529.8M | $288.1M | $241.7M | 54.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 28, 2023
+1.1 pts
Year-over-year change
May 31, 2022
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement relative to the preceding quarter was driven by a stronger increase in gross profit compared to cost of revenue.
Compared to the prior quarter, revenue, gross profit, and gross margin all improved. Compared to the same quarter a year ago, revenue and gross profit were higher, while gross margin was slightly lower.
Monitor the trend in cost of revenue relative to revenue, as its growth rate may influence gross margin stability.