Ingersoll Rand Inc. stock research
FY2023 Q3
Ingersoll Rand (IR) Gross Margin — Quarter Ended Sep 30, 2023
Revenue was higher than both the prior quarter and the same quarter last year. Gross profit rose at a faster pace than cost of revenue, leading to an improved gross margin compared to both periods.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue was higher than both the prior quarter and the same quarter last year. Gross profit rose at a faster pace than cost of revenue, leading to an improved gross margin compared to both periods.
- The relationship shows that gross profit expansion outpaced both revenue growth and cost of revenue increases. This indicates that the cost of revenue grew at a slower rate relative to revenue, supporting margin improvement.
- Compared to the immediately preceding quarter, gross margin strengthened. Compared to the same quarter one year earlier, gross margin also strengthened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.5%
Gross profit
$739.3M
Revenue
$1.7B
Cost of revenue
$999.6M
Quarter-over-quarter change
+1.2 pts
Year-over-year change
+4.6 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 | $1.6B | $664.2M | $965.1M | 40.8% |
| Jun 30, 2023 | $1.7B | $697.5M | $989.0M | 41.4% |
| Sep 30, 2023 | $1.7B | $739.3M | $999.6M | 42.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+1.2 pts
Year-over-year change
Sep 30, 2022
+4.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship shows that gross profit expansion outpaced both revenue growth and cost of revenue increases. This indicates that the cost of revenue grew at a slower rate relative to revenue, supporting margin improvement.
Compared to the immediately preceding quarter, gross margin strengthened. Compared to the same quarter one year earlier, gross margin also strengthened.
Monitor whether cost of revenue continues to increase at a slower pace than revenue in future quarters.