Fortive Corporation stock research
FY2023 Q1
Fortive (FTV) Gross Margin — Quarter Ended Mar 31, 2023
Revenue was broadly unchanged from the prior quarter, while gross profit decreased and cost of revenue declined, resulting in a slightly lower gross margin. Compared with the same quarter a year earlier, revenue, gross profit, and cost of revenue all grew, and gross margin improved modestly.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue was broadly unchanged from the prior quarter, while gross profit decreased and cost of revenue declined, resulting in a slightly lower gross margin. Compared with the same quarter a year earlier, revenue, gross profit, and cost of revenue all grew, and gross margin improved modestly.
- The strongest observable driver this quarter was the relative change in cost of revenue: it declined more than revenue compared to the prior quarter, partially offsetting the gross profit decrease. This suggests cost of revenue was the primary factor influencing margin performance.
- Compared to the prior quarter, gross margin weakened very slightly, with revenue stable and gross profit lower. Compared to the same quarter one year earlier, gross margin improved, driven by a larger increase in gross profit relative to revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
58.1%
Gross profit
$848.2M
Revenue
$1.5B
Cost of revenue
$612.5M
Quarter-over-quarter change
n/a
Year-over-year change
+0.5 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 | $1.5B | $848.2M | $612.5M | 58.1% |
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
Apr 1, 2022
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver this quarter was the relative change in cost of revenue: it declined more than revenue compared to the prior quarter, partially offsetting the gross profit decrease. This suggests cost of revenue was the primary factor influencing margin performance.
Compared to the prior quarter, gross margin weakened very slightly, with revenue stable and gross profit lower. Compared to the same quarter one year earlier, gross margin improved, driven by a larger increase in gross profit relative to revenue.
Monitor the trajectory of cost of revenue relative to revenue, as its decline versus the prior quarter was a key factor in margin stability.