Gartner, Inc. stock research
FY2023 Q3
Gartner (IT) Gross Margin — Quarter Ended Sep 30, 2023
In the current quarter, revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross margin improved sequentially but weakened year over year, reflecting mixed performance.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
In the current quarter, revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross margin improved sequentially but weakened year over year, reflecting mixed performance.
- The sequential improvement in gross margin was associated with a larger relative decline in cost of revenue compared to revenue. The year-over-year decline was linked to a larger relative increase in cost of revenue relative to revenue.
- Compared to the prior quarter, gross profit was lower and cost of revenue was lower, with gross margin slightly higher. Compared to the same quarter last year, gross profit was higher and cost of revenue was higher, with gross margin slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
68.0%
Gross profit
$957.9M
Revenue
$1.4B
Cost of revenue
$450.8M
Quarter-over-quarter change
+0.4 pts
Year-over-year change
-0.7 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 | $1.4B | $973.7M | $435.1M | 69.1% |
| Jun 30, 2023 | $1.5B | $1.0B | $487.4M | 67.6% |
| Sep 30, 2023 | $1.4B | $957.9M | $450.8M | 68.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.4 pts
Year-over-year change
Sep 30, 2022
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was associated with a larger relative decline in cost of revenue compared to revenue. The year-over-year decline was linked to a larger relative increase in cost of revenue relative to revenue.
Compared to the prior quarter, gross profit was lower and cost of revenue was lower, with gross margin slightly higher. Compared to the same quarter last year, gross profit was higher and cost of revenue was higher, with gross margin slightly lower.
Monitor the trend in cost of revenue relative to revenue, as it is a key factor influencing gross margin direction.