Ingersoll Rand Inc. stock research
FY2023 Q2
Ingersoll Rand (IR) Gross Margin — Quarter Ended Jun 30, 2023
Revenue growth outpaced the increase in cost of revenue, leading to higher gross profit and a stronger gross margin this quarter. Compared to the prior quarter and the same quarter a year ago, both revenue and gross profit improved, while cost of revenue also rose but at a slower relative pace.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue growth outpaced the increase in cost of revenue, leading to higher gross profit and a stronger gross margin this quarter. Compared to the prior quarter and the same quarter a year ago, both revenue and gross profit improved, while cost of revenue also rose but at a slower relative pace.
- The gross margin improved because gross profit expanded more rapidly than revenue, reflecting a favorable relationship between revenue and cost of revenue.
- Gross margin was higher than both the immediately preceding quarter and the same quarter one year earlier. Revenue, gross profit, and cost of revenue all increased relative to those periods.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.4%
Gross profit
$697.5M
Revenue
$1.7B
Cost of revenue
$989.0M
Quarter-over-quarter change
+0.6 pts
Year-over-year change
+1.8 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 | $1.6B | $664.2M | $965.1M | 40.8% |
| Jun 30, 2023 | $1.7B | $697.5M | $989.0M | 41.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+0.6 pts
Year-over-year change
Jun 30, 2022
+1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved because gross profit expanded more rapidly than revenue, reflecting a favorable relationship between revenue and cost of revenue.
Gross margin was higher than both the immediately preceding quarter and the same quarter one year earlier. Revenue, gross profit, and cost of revenue all increased relative to those periods.
Monitor the trend in the ratio of cost of revenue to revenue in future quarters to assess whether the recent margin improvement can be sustained.