FI

Fidelity National Information Services, Inc. stock research

Sep 30, 2023

FY2023 Q3

Fidelity National Information Services (FIS) Gross Margin — Quarter Ended Sep 30, 2023

Revenue and gross profit both increased compared to the prior quarter, while cost of revenue remained unchanged, leading to an improved gross margin. The year-ago quarter's figures are not directly comparable due to negative revenue and gross profit.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q3

Revenue and gross profit both increased compared to the prior quarter, while cost of revenue remained unchanged, leading to an improved gross margin. The year-ago quarter's figures are not directly comparable due to negative revenue and gross profit.

  • The primary observable driver of the gross margin improvement was the increase in gross profit alongside stable cost of revenue.
  • Gross margin improved compared to the immediately preceding quarter. The year-ago quarter's gross margin is not comparable due to negative revenue and gross profit.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

38.2%

Gross profit

$951.0M

Revenue

$2.5B

Cost of revenue

$1.5B

Quarter-over-quarter change

+0.6 pts

Year-over-year change

-1130.6 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$2.4B$823.0M$1.6B34.3%
Jun 30, 2023$2.4B$912.0M$1.5B37.6%
Sep 30, 2023$2.5B$951.0M$1.5B38.2%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2023

+0.6 pts

Year-over-year change

Sep 30, 2022

-1130.6 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The primary observable driver of the gross margin improvement was the increase in gross profit alongside stable cost of revenue.

Gross margin improved compared to the immediately preceding quarter. The year-ago quarter's gross margin is not comparable due to negative revenue and gross profit.

Monitor whether cost of revenue remains stable in future quarters.