GE

GE HealthCare Technologies Inc. stock research

Sep 30, 2023

FY2023 Q3

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

In the current quarter, revenue and gross profit were both higher than the same quarter last year, while cost of revenue also increased. The gross margin improved compared to the prior year but weakened slightly from the immediately preceding quarter.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q3

In the current quarter, revenue and gross profit were both higher than the same quarter last year, while cost of revenue also increased. The gross margin improved compared to the prior year but weakened slightly from the immediately preceding quarter.

  • The year-over-year expansion in gross margin reflects a larger increase in gross profit relative to the increases in revenue and cost of revenue.
  • Compared to the previous quarter, revenue and gross profit were unchanged, while gross margin edged lower. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, with gross margin improving.

Gross margin snapshot

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

Gross margin

40.1%

Gross profit

$1.9B

Revenue

$4.8B

Cost of revenue

$2.9B

Quarter-over-quarter change

-0.1 pts

Year-over-year change

+1.4 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%
Sep 30, 2023$4.8B$1.9B$2.9B40.1%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2023

-0.1 pts

Year-over-year change

Sep 30, 2022

+1.4 pts

What the margin says

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

The year-over-year expansion in gross margin reflects a larger increase in gross profit relative to the increases in revenue and cost of revenue.

Compared to the previous quarter, revenue and gross profit were unchanged, while gross margin edged lower. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, with gross margin improving.

Monitor whether the gross margin can sustain its year-over-year improvement given the slight sequential decline.