International Business Machines Corporation stock research
FY2023 Q1
International Business Machines (IBM) Gross Margin — Quarter Ended Mar 31, 2023
Revenue was slightly higher than the same quarter last year, while cost of revenue decreased, resulting in higher gross profit and an improved gross margin. Compared to the prior quarter, revenue and gross profit were lower, and gross margin weakened.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue was slightly higher than the same quarter last year, while cost of revenue decreased, resulting in higher gross profit and an improved gross margin. Compared to the prior quarter, revenue and gross profit were lower, and gross margin weakened.
- The decrease in cost of revenue from the prior year quarter was the most significant factor in the gross margin improvement.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all lower. Compared to the same quarter one year earlier, revenue was slightly higher, gross profit was higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
52.7%
Gross profit
$7.5B
Revenue
$14.3B
Cost of revenue
$6.7B
Quarter-over-quarter change
n/a
Year-over-year change
+1.0 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 | $14.3B | $7.5B | $6.7B | 52.7% |
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
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decrease in cost of revenue from the prior year quarter was the most significant factor in the gross margin improvement.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all lower. Compared to the same quarter one year earlier, revenue was slightly higher, gross profit was higher, and gross margin improved.
The company's liquidity and capital resources, including cash and credit facilities, were discussed in the filing as stable.