Fidelity National Information Services, Inc. stock research
FY2023 Q2
Fidelity National Information Services (FIS) Gross Margin — Quarter Ended Jun 30, 2023
Revenue was unchanged from the prior quarter but declined compared to the same quarter one year earlier, while cost of revenue was lower both sequentially and year-over-year. As a result, gross profit improved from the previous quarter but weakened from the prior-year period, and gross margin strengthened sequentially yet weakened year-over-year.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue was unchanged from the prior quarter but declined compared to the same quarter one year earlier, while cost of revenue was lower both sequentially and year-over-year. As a result, gross profit improved from the previous quarter but weakened from the prior-year period, and gross margin strengthened sequentially yet weakened year-over-year.
- The strongest observable margin driver is the reduction in cost of revenue from the preceding quarter, which outpaced the flat revenue trend and lifted gross margin.
- Compared to the immediately preceding quarter, gross margin improved as cost of revenue decreased while revenue held steady. Relative to the same quarter one year earlier, gross margin weakened as revenue declined more steeply than the reduction in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.6%
Gross profit
$912.0M
Revenue
$2.4B
Cost of revenue
$1.5B
Quarter-over-quarter change
+3.3 pts
Year-over-year change
-2.4 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% |
| Jun 30, 2023 | $2.4B | $912.0M | $1.5B | 37.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+3.3 pts
Year-over-year change
Jun 30, 2022
-2.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the reduction in cost of revenue from the preceding quarter, which outpaced the flat revenue trend and lifted gross margin.
Compared to the immediately preceding quarter, gross margin improved as cost of revenue decreased while revenue held steady. Relative to the same quarter one year earlier, gross margin weakened as revenue declined more steeply than the reduction in cost of revenue.
Monitor the trajectory of cost of revenue relative to revenue, as its year-over-year reduction rate lagged the revenue decline and compressed gross margin.