Gilead Sciences, Inc. stock research
FY2023 Q3
Gilead Sciences (GILD) Gross Margin — Quarter Ended Sep 30, 2023
Revenue in the current quarter was higher than both the immediately preceding quarter and the same quarter one year earlier, but cost of revenue increased at a faster pace, resulting in a gross margin that was lower than both comparative periods.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue in the current quarter was higher than both the immediately preceding quarter and the same quarter one year earlier, but cost of revenue increased at a faster pace, resulting in a gross margin that was lower than both comparative periods.
- The relationship between revenue growth and cost of revenue growth is the primary observable driver of margin change, with cost rising more relative to revenue, compressing gross margin.
- Compared with the immediately preceding quarter, gross margin weakened slightly while revenue improved. Versus the same quarter one year earlier, gross margin was lower despite a modest increase in revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
77.8%
Gross profit
$5.5B
Revenue
$7.1B
Cost of revenue
$1.6B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
-2.4 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 | $6.4B | $5.0B | $1.4B | 77.9% |
| Jun 30, 2023 | $6.6B | $5.2B | $1.4B | 78.1% |
| Sep 30, 2023 | $7.1B | $5.5B | $1.6B | 77.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.3 pts
Year-over-year change
Sep 30, 2022
-2.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue growth and cost of revenue growth is the primary observable driver of margin change, with cost rising more relative to revenue, compressing gross margin.
Compared with the immediately preceding quarter, gross margin weakened slightly while revenue improved. Versus the same quarter one year earlier, gross margin was lower despite a modest increase in revenue.
Monitor the trend of cost of revenue relative to revenue, as the faster growth in cost continues to outpace revenue growth and may further pressure gross margin.