GE HealthCare Technologies Inc. stock research
FY2023 Q1
GE HealthCare Technologies (GEHC) Gross Margin — Quarter Ended Mar 31, 2023
Revenue was lower than the prior quarter but higher than the same quarter last year, while cost of revenue decreased relative to the prior quarter and increased slightly year over year. Gross profit remained steady sequentially and improved compared to the year-ago period, leading to a gross margin that improved both sequentially and year over year.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue was lower than the prior quarter but higher than the same quarter last year, while cost of revenue decreased relative to the prior quarter and increased slightly year over year. Gross profit remained steady sequentially and improved compared to the year-ago period, leading to a gross margin that improved both sequentially and year over year.
- The gross margin strengthened from both the immediately preceding quarter and the same quarter one year earlier, with the year-over-year improvement being more pronounced. This was supported by revenue growth combined with a relatively smaller increase in cost of revenue, and by a reduction in costs against stable gross profit sequentially.
- Compared with the prior quarter, revenue was lower but cost of revenue decreased even more, allowing gross margin to improve. Versus the same quarter last year, both revenue and gross profit were higher, and cost of revenue increased at a slower pace, resulting in a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
40.2%
Gross profit
$1.9B
Revenue
$4.7B
Cost of revenue
$2.8B
Quarter-over-quarter change
n/a
Year-over-year change
+1.5 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 | $4.7B | $1.9B | $2.8B | 40.2% |
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
Mar 31, 2022
+1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin strengthened from both the immediately preceding quarter and the same quarter one year earlier, with the year-over-year improvement being more pronounced. This was supported by revenue growth combined with a relatively smaller increase in cost of revenue, and by a reduction in costs against stable gross profit sequentially.
Compared with the prior quarter, revenue was lower but cost of revenue decreased even more, allowing gross margin to improve. Versus the same quarter last year, both revenue and gross profit were higher, and cost of revenue increased at a slower pace, resulting in a higher gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as the sequential improvement in gross margin was driven by a reduction in costs.