GE HealthCare Technologies Inc. stock research
FY2023 Q4
GE HealthCare Technologies (GEHC) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit both rose compared with the preceding quarter and the same quarter a year earlier, while cost of revenue increased less than revenue over both periods. Gross margin strengthened sequentially and year-over-year, reflecting a favorable relationship among the three line items.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit both rose compared with the preceding quarter and the same quarter a year earlier, while cost of revenue increased less than revenue over both periods. Gross margin strengthened sequentially and year-over-year, reflecting a favorable relationship among the three line items.
- Gross profit grew more than cost of revenue relative to revenue, which is the primary observable pattern supporting margin improvement. The driver is the combined outcome of revenue and cost changes, not separable components.
- Compared with the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Versus the same quarter one year earlier, all three metrics—revenue, gross profit, and gross margin—were higher, while cost of revenue was mixed (higher than the prior quarter but unchanged from a year ago).
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.4%
Gross profit
$2.2B
Revenue
$5.2B
Cost of revenue
$3.0B
Quarter-over-quarter change
+1.3 pts
Year-over-year change
+2.3 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% |
| Jun 30, 2023 | $4.8B | $1.9B | $2.9B | 40.3% |
| Sep 30, 2023 | $4.8B | $1.9B | $2.9B | 40.1% |
| Dec 31, 2023 | $5.2B | $2.2B | $3.0B | 41.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+1.3 pts
Year-over-year change
Dec 31, 2022
+2.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew more than cost of revenue relative to revenue, which is the primary observable pattern supporting margin improvement. The driver is the combined outcome of revenue and cost changes, not separable components.
Compared with the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Versus the same quarter one year earlier, all three metrics—revenue, gross profit, and gross margin—were higher, while cost of revenue was mixed (higher than the prior quarter but unchanged from a year ago).
Monitor the trajectory of cost of revenue relative to revenue, as its growth rate diverged between the sequential and year-ago comparisons.