IQVIA Holdings Inc. stock research
FY2023 Q2
IQVIA Holdings (IQV) Gross Margin — Quarter Ended Jun 30, 2023
Revenue was stable compared to the prior quarter and higher than the same quarter a year earlier. Gross profit increased relative to both periods, while cost of revenue was stable sequentially but higher year-over-year, resulting in an improved gross margin compared to the prior quarter and a higher gross margin than the year-ago quarter.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue was stable compared to the prior quarter and higher than the same quarter a year earlier. Gross profit increased relative to both periods, while cost of revenue was stable sequentially but higher year-over-year, resulting in an improved gross margin compared to the prior quarter and a higher gross margin than the year-ago quarter.
- The strongest observable margin driver is the increase in gross profit while revenue remained unchanged from the prior quarter, which lifted the gross margin. The year-over-year improvement reflects a larger increase in gross profit relative to the increase in revenue.
- Compared with the immediately preceding quarter, gross margin improved as gross profit rose while revenue was flat. Compared with the same quarter one year earlier, gross margin was higher, driven by a larger proportional increase in gross profit than in revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
22.8%
Gross profit
$850.0M
Revenue
$3.7B
Cost of revenue
$2.9B
Quarter-over-quarter change
+0.8 pts
Year-over-year change
+0.3 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 | $3.7B | $802.0M | $2.9B | 22.0% |
| Jun 30, 2023 | $3.7B | $850.0M | $2.9B | 22.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+0.8 pts
Year-over-year change
Jun 30, 2022
+0.3 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 while revenue remained unchanged from the prior quarter, which lifted the gross margin. The year-over-year improvement reflects a larger increase in gross profit relative to the increase in revenue.
Compared with the immediately preceding quarter, gross margin improved as gross profit rose while revenue was flat. Compared with the same quarter one year earlier, gross margin was higher, driven by a larger proportional increase in gross profit than in revenue.
Monitor the trend of cost of revenue relative to revenue, as it remained stable sequentially but increased year-over-year, which could affect future margin performance.