Fortive Corporation stock research
FY2023 Q3
Fortive (FTV) Gross Margin — Quarter Ended Sep 29, 2023
Revenue remained stable compared to both the prior quarter and the same quarter last year. Gross profit decreased slightly from the prior quarter but improved year-over-year, while cost of revenue declined relative to both periods, resulting in a higher gross margin.
Gross margin takeaway
Quarter ended Sep 29, 2023 · FY2023 Q3
Revenue remained stable compared to both the prior quarter and the same quarter last year. Gross profit decreased slightly from the prior quarter but improved year-over-year, while cost of revenue declined relative to both periods, resulting in a higher gross margin.
- The gross margin improved sequentially and year-over-year primarily as cost of revenue declined while revenue was unchanged. The most observable driver is the reduction in cost of revenue relative to revenue.
- Compared to the prior quarter, gross margin was higher despite a slightly lower gross profit, as cost of revenue decreased. Versus the same quarter a year ago, gross margin strengthened with both higher gross profit and lower cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.8%
Gross profit
$893.0M
Revenue
$1.5B
Cost of revenue
$601.5M
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+1.7 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% |
| Sep 29, 2023 | $1.5B | $893.0M | $601.5M | 59.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.4 pts
Year-over-year change
Sep 30, 2022
+1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially and year-over-year primarily as cost of revenue declined while revenue was unchanged. The most observable driver is the reduction in cost of revenue relative to revenue.
Compared to the prior quarter, gross margin was higher despite a slightly lower gross profit, as cost of revenue decreased. Versus the same quarter a year ago, gross margin strengthened with both higher gross profit and lower cost of revenue.
Monitor inventory levels, which increased from the end of the prior fiscal year to the current quarter end.