International Business Machines Corporation stock research
FY2023 Q2
International Business Machines (IBM) Gross Margin — Quarter Ended Jun 30, 2023
Revenue increased from the prior quarter and remained stable from the same quarter last year. Gross profit rose relative to both periods, resulting in an improved gross margin. Management reported effective disclosure controls and no material change in internal controls.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue increased from the prior quarter and remained stable from the same quarter last year. Gross profit rose relative to both periods, resulting in an improved gross margin. Management reported effective disclosure controls and no material change in internal controls.
- The gross margin strengthened because cost of revenue declined year over year while revenue held steady, and increased at a slower pace sequentially.
- Compared to the prior quarter, the gross margin was higher. Compared to the same quarter a year ago, the gross margin was also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
54.9%
Gross profit
$8.5B
Revenue
$15.5B
Cost of revenue
$7.0B
Quarter-over-quarter change
+2.2 pts
Year-over-year change
+1.6 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% |
| Jun 30, 2023 | $15.5B | $8.5B | $7.0B | 54.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+2.2 pts
Year-over-year change
Jun 30, 2022
+1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin strengthened because cost of revenue declined year over year while revenue held steady, and increased at a slower pace sequentially.
Compared to the prior quarter, the gross margin was higher. Compared to the same quarter a year ago, the gross margin was also higher.
Monitor trends in cost of revenue, as its movement directly impacts gross margin.