Corning Incorporated stock research
FY2023 Q1
Corning (GLW) Gross Margin — Quarter Ended Mar 31, 2023
Revenue declined from both the preceding quarter and the same quarter a year earlier. Gross profit was higher than the prior quarter but lower than the year-ago level, while cost of revenue decreased sequentially, resulting in an improved gross margin compared to the preceding quarter, though the margin weakened relative to the same quarter last year.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue declined from both the preceding quarter and the same quarter a year earlier. Gross profit was higher than the prior quarter but lower than the year-ago level, while cost of revenue decreased sequentially, resulting in an improved gross margin compared to the preceding quarter, though the margin weakened relative to the same quarter last year.
- The primary driver of the sequential margin improvement was a reduction in cost of revenue that outpaced the decline in revenue, lowering the cost ratio. The margin weakened year over year as revenue fell more sharply than cost of revenue.
- Compared to the immediately preceding quarter, gross margin strengthened. Compared to the same quarter one year earlier, gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.6%
Gross profit
$1.0B
Revenue
$3.2B
Cost of revenue
$2.2B
Quarter-over-quarter change
n/a
Year-over-year change
-3.3 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 | $3.2B | $1.0B | $2.2B | 31.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
-3.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of the sequential margin improvement was a reduction in cost of revenue that outpaced the decline in revenue, lowering the cost ratio. The margin weakened year over year as revenue fell more sharply than cost of revenue.
Compared to the immediately preceding quarter, gross margin strengthened. Compared to the same quarter one year earlier, gross margin weakened.
Monitor whether the reduction in cost of revenue can be sustained as revenue continues to evolve.