GE

GE HealthCare Technologies Inc. stock research

Jun 30, 2023

FY2023 Q2

GE HealthCare Technologies (GEHC) Gross Margin — Quarter Ended Jun 30, 2023

Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was stable quarter over quarter and higher year over year. Gross margin improved slightly in both comparisons, as revenue growth outpaced the increase in cost of revenue.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q2

Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was stable quarter over quarter and higher year over year. Gross margin improved slightly in both comparisons, as revenue growth outpaced the increase in cost of revenue.

  • The slight expansion in gross margin was primarily driven by revenue growth exceeding the increase in cost of revenue on both a sequential and year-over-year basis.
  • Compared to the prior quarter, revenue was higher while gross profit was similar, and gross margin increased modestly. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were all higher, with gross margin also improving.

Gross margin snapshot

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

Gross margin

40.3%

Gross profit

$1.9B

Revenue

$4.8B

Cost of revenue

$2.9B

Quarter-over-quarter change

+0.1 pts

Year-over-year change

+0.2 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$4.7B$1.9B$2.8B40.2%
Jun 30, 2023$4.8B$1.9B$2.9B40.3%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2023

+0.1 pts

Year-over-year change

Jun 30, 2022

+0.2 pts

What the margin says

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

The slight expansion in gross margin was primarily driven by revenue growth exceeding the increase in cost of revenue on both a sequential and year-over-year basis.

Compared to the prior quarter, revenue was higher while gross profit was similar, and gross margin increased modestly. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were all higher, with gross margin also improving.

Monitor the trend in cost of revenue, which increased in absolute terms both sequentially and year over year, to assess its impact on future gross margin.

GEHC Gross Margin — Quarter Ended Jun 30, 2023