International Business Machines Corporation stock research
FY2023 Q4
International Business Machines (IBM) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was stable year over year. Gross margin improved sequentially and also rose relative to the year-ago period.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was stable year over year. Gross margin improved sequentially and also rose relative to the year-ago period.
- The strongest observable margin driver is the increase in gross profit relative to revenue, as gross margin expanded both sequentially and year over year.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, while cost of revenue was unchanged, leading to a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.1%
Gross profit
$10.3B
Revenue
$17.4B
Cost of revenue
$7.1B
Quarter-over-quarter change
+4.7 pts
Year-over-year change
+1.4 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% |
| Sep 30, 2023 | $14.8B | $8.0B | $6.7B | 54.4% |
| Dec 31, 2023 | $17.4B | $10.3B | $7.1B | 59.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+4.7 pts
Year-over-year change
Dec 31, 2022
+1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in gross profit relative to revenue, as gross margin expanded both sequentially and year over year.
Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, while cost of revenue was unchanged, leading to a higher gross margin.
Monitor whether cost of revenue remains stable in future quarters, as it was unchanged year over year despite higher revenue.