Corning Incorporated stock research
FY2023 Q3
Corning (GLW) Gross Margin — Quarter Ended Sep 30, 2023
For the quarter, revenue and gross profit were lower compared to the prior year, while cost of revenue also declined. Gross margin improved over both the prior quarter and the year-ago quarter, reflecting a lower share of cost of revenue in total revenue.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
For the quarter, revenue and gross profit were lower compared to the prior year, while cost of revenue also declined. Gross margin improved over both the prior quarter and the year-ago quarter, reflecting a lower share of cost of revenue in total revenue.
- The most notable margin driver was the reduction in cost of revenue as a percentage of revenue, which allowed gross margin to rise despite lower revenue. This change was consistent both sequentially and year over year.
- Compared to the preceding quarter, revenue and gross profit were flat, with gross margin edging higher. Versus the same quarter last year, revenue and gross profit were lower, but gross margin strengthened, driven by a proportionally larger decrease in cost of revenue.
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
+0.4 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.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $3.2B | $1.0B | $2.2B | 31.6% |
| Jun 30, 2023 | $3.2B | $1.0B | $2.2B | 31.2% |
| Sep 30, 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
Jun 30, 2023
+0.4 pts
Year-over-year change
Sep 30, 2022
+1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable margin driver was the reduction in cost of revenue as a percentage of revenue, which allowed gross margin to rise despite lower revenue. This change was consistent both sequentially and year over year.
Compared to the preceding quarter, revenue and gross profit were flat, with gross margin edging higher. Versus the same quarter last year, revenue and gross profit were lower, but gross margin strengthened, driven by a proportionally larger decrease in cost of revenue.
Monitor the trend in cost of revenue relative to revenue to assess whether the improved margin can be sustained.