Alphabet Inc. stock research
FY2023 Q2
Alphabet (GOOGL) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both increased, while cost of revenue also rose. Gross margin improved compared to the immediately preceding quarter but weakened relative to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit both increased, while cost of revenue also rose. Gross margin improved compared to the immediately preceding quarter but weakened relative to the same quarter one year earlier.
- The improvement in gross margin from the prior quarter was accompanied by a proportionally smaller increase in cost of revenue relative to revenue. The year-over-year decline indicates that cost growth outpaced revenue growth over the longer comparison period.
- Gross margin was higher than the immediately preceding quarter but lower than the same quarter one year earlier. Revenue and gross profit both rose compared with both prior periods.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
57.2%
Gross profit
$42.7B
Revenue
$74.6B
Cost of revenue
$31.9B
Quarter-over-quarter change
+1.1 pts
Year-over-year change
n/a
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 | $69.8B | $39.2B | $30.6B | 56.1% |
| Jun 30, 2023 | $74.6B | $42.7B | $31.9B | 57.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.1 pts
Year-over-year change
Year-ago quarter unavailable
n/a
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin from the prior quarter was accompanied by a proportionally smaller increase in cost of revenue relative to revenue. The year-over-year decline indicates that cost growth outpaced revenue growth over the longer comparison period.
Gross margin was higher than the immediately preceding quarter but lower than the same quarter one year earlier. Revenue and gross profit both rose compared with both prior periods.
Monitor the trend in cost of revenue relative to revenue, as it directly influences gross margin performance.