JABIL INC stock research
FY2023 Q3
JABIL (JBL) Gross Margin — Quarter Ended May 31, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved slightly from the prior quarter and more notably from the year-ago quarter, reflecting a stronger relationship between gross profit and revenue.
Gross margin takeaway
Quarter ended May 31, 2023 · FY2023 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved slightly from the prior quarter and more notably from the year-ago quarter, reflecting a stronger relationship between gross profit and revenue.
- The strongest observable margin driver is the increase in gross profit relative to revenue, as gross margin rose both sequentially and year-over-year. This indicates that gross profit grew at a faster pace than revenue, supporting margin expansion.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, with gross margin improving slightly. Versus the same quarter one year earlier, all three metrics were higher, and gross margin showed a more pronounced improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
8.2%
Gross profit
$697.0M
Revenue
$8.5B
Cost of revenue
$7.8B
Quarter-over-quarter change
+0.1 pts
Year-over-year change
+0.8 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 |
|---|---|---|---|---|
| Feb 28, 2023 | $8.1B | $661.0M | $7.5B | 8.1% |
| May 31, 2023 | $8.5B | $697.0M | $7.8B | 8.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 28, 2023
+0.1 pts
Year-over-year change
May 31, 2022
+0.8 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 relative to revenue, as gross margin rose both sequentially and year-over-year. This indicates that gross profit grew at a faster pace than revenue, supporting margin expansion.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, with gross margin improving slightly. Versus the same quarter one year earlier, all three metrics were higher, and gross margin showed a more pronounced improvement.
Monitor the trajectory of cost of revenue relative to revenue, as its increase alongside revenue growth will continue to influence gross margin.