Fidelity National Information Services, Inc. stock research
FY2023 Q1
Fidelity National Information Services (FIS) Gross Margin — Quarter Ended Mar 31, 2023
Revenue was stable compared to the same quarter last year, but cost of revenue was lower, leading to higher gross profit and an improved gross margin. Relative to the previous quarter, revenue declined and gross profit decreased, resulting in a lower gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue was stable compared to the same quarter last year, but cost of revenue was lower, leading to higher gross profit and an improved gross margin. Relative to the previous quarter, revenue declined and gross profit decreased, resulting in a lower gross margin.
- The strongest observable driver of gross margin was the relationship between cost of revenue and revenue. Compared to the same quarter a year earlier, cost of revenue as a proportion of revenue decreased, allowing gross margin to improve.
- Gross margin weakened sequentially from the prior quarter but improved compared to the same quarter one year earlier. Revenue was lower than the prior quarter and unchanged from the year-ago period.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.3%
Gross profit
$823.0M
Revenue
$2.4B
Cost of revenue
$1.6B
Quarter-over-quarter change
n/a
Year-over-year change
+0.6 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 | $2.4B | $823.0M | $1.6B | 34.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of gross margin was the relationship between cost of revenue and revenue. Compared to the same quarter a year earlier, cost of revenue as a proportion of revenue decreased, allowing gross margin to improve.
Gross margin weakened sequentially from the prior quarter but improved compared to the same quarter one year earlier. Revenue was lower than the prior quarter and unchanged from the year-ago period.
Monitor the trajectory of cost of revenue, as its level relative to revenue is a key determinant of gross margin.