GI

Gilead Sciences, Inc. stock research

Jun 30, 2023

FY2023 Q2

Gilead Sciences (GILD) Gross Margin — Quarter Ended Jun 30, 2023

Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue remained unchanged, leading to higher gross profit and improved gross margin. The filing notes that operating cash flow for the six months ended June 30, 2023 increased compared to the same period in 2022, and cash and cash equivalents also rose.

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 cost of revenue remained unchanged, leading to higher gross profit and improved gross margin. The filing notes that operating cash flow for the six months ended June 30, 2023 increased compared to the same period in 2022, and cash and cash equivalents also rose.

  • The strongest observable driver of margin improvement was the stability of cost of revenue, which did not increase despite higher revenue.
  • Gross margin was higher than the immediately preceding quarter and also higher than the same quarter one year earlier, reflecting a larger revenue base with stable cost of revenue.

Gross margin snapshot

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

Gross margin

78.1%

Gross profit

$5.2B

Revenue

$6.6B

Cost of revenue

$1.4B

Quarter-over-quarter change

+0.2 pts

Year-over-year change

+1.2 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$6.4B$5.0B$1.4B77.9%
Jun 30, 2023$6.6B$5.2B$1.4B78.1%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2023

+0.2 pts

Year-over-year change

Jun 30, 2022

+1.2 pts

What the margin says

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

The strongest observable driver of margin improvement was the stability of cost of revenue, which did not increase despite higher revenue.

Gross margin was higher than the immediately preceding quarter and also higher than the same quarter one year earlier, reflecting a larger revenue base with stable cost of revenue.

Monitor whether cost of revenue remains stable in future quarters, as any increase could pressure gross margin.