Intel Corporation stock research
FY2023 Q3
Intel (INTC) Gross Margin — Quarter Ended Sep 30, 2023
Revenue increased compared to the prior quarter, while cost of revenue decreased, leading to a higher gross profit and an improved gross margin. Gross margin was stable relative to the same quarter one year earlier, as revenue and gross profit were lower but cost of revenue also declined.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue increased compared to the prior quarter, while cost of revenue decreased, leading to a higher gross profit and an improved gross margin. Gross margin was stable relative to the same quarter one year earlier, as revenue and gross profit were lower but cost of revenue also declined.
- The strongest observable margin driver is the combination of higher revenue and lower cost of revenue compared to the prior quarter, which directly lifted gross profit and gross margin.
- Compared to the immediately preceding quarter, gross margin improved as revenue rose and cost of revenue fell. Versus the same quarter one year earlier, gross margin was essentially stable, with revenue and gross profit lower but cost of revenue also lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.5%
Gross profit
$6.0B
Revenue
$14.2B
Cost of revenue
$8.1B
Quarter-over-quarter change
+6.7 pts
Year-over-year change
-0.1 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 |
|---|---|---|---|---|
| Apr 1, 2023 | $11.7B | $4.0B | $7.7B | 34.2% |
| Jul 1, 2023 | $12.9B | $4.6B | $8.3B | 35.8% |
| Sep 30, 2023 | $14.2B | $6.0B | $8.1B | 42.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 1, 2023
+6.7 pts
Year-over-year change
FY2022 Q3
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the combination of higher revenue and lower cost of revenue compared to the prior quarter, which directly lifted gross profit and gross margin.
Compared to the immediately preceding quarter, gross margin improved as revenue rose and cost of revenue fell. Versus the same quarter one year earlier, gross margin was essentially stable, with revenue and gross profit lower but cost of revenue also lower.
Monitor whether revenue growth can be sustained while cost of revenue remains controlled, as this dynamic was key to the margin improvement.