Fortive Corporation stock research
FY2023 Q2
Fortive (FTV) Gross Margin — Quarter Ended Jun 30, 2023
Revenue remained stable while gross profit increased, leading to a higher gross margin. Cost of revenue was lower than the year-ago quarter but slightly higher than the previous quarter.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue remained stable while gross profit increased, leading to a higher gross margin. Cost of revenue was lower than the year-ago quarter but slightly higher than the previous quarter.
- The strongest observable margin driver is the increase in gross profit even as revenue held steady, which directly expanded the gross margin.
- Gross margin improved compared with both the immediately preceding quarter and the same quarter one year earlier. Sequentially, gross profit rose while cost of revenue edged up, and year-over-year gross profit rose while cost of revenue declined.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.3%
Gross profit
$905.4M
Revenue
$1.5B
Cost of revenue
$621.0M
Quarter-over-quarter change
+1.2 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 | $1.5B | $848.2M | $612.5M | 58.1% |
| Jun 30, 2023 | $1.5B | $905.4M | $621.0M | 59.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.2 pts
Year-over-year change
Jul 1, 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 increase in gross profit even as revenue held steady, which directly expanded the gross margin.
Gross margin improved compared with both the immediately preceding quarter and the same quarter one year earlier. Sequentially, gross profit rose while cost of revenue edged up, and year-over-year gross profit rose while cost of revenue declined.
Monitor the trajectory of cost of revenue relative to gross profit, as it shifted direction from the previous quarter.