JB

JABIL INC stock research

Aug 31, 2023

FY2023 Q4

JABIL (JBL) Gross Margin — Quarter Ended Aug 31, 2023

Revenue was stable compared to the prior quarter, while gross profit increased and cost of revenue decreased, resulting in an improved gross margin. Compared to the same quarter one year earlier, revenue was lower, but gross profit was higher and cost of revenue was lower, leading to a stronger gross margin.

Gross margin takeaway

Quarter ended Aug 31, 2023 · FY2023 Q4

Revenue was stable compared to the prior quarter, while gross profit increased and cost of revenue decreased, resulting in an improved gross margin. Compared to the same quarter one year earlier, revenue was lower, but gross profit was higher and cost of revenue was lower, leading to a stronger gross margin.

  • The gross margin improved sequentially and year-over-year, driven by a combination of higher gross profit and lower cost of revenue relative to revenue.
  • Sequentially, gross margin improved from the prior quarter, as gross profit rose while cost of revenue fell. Year-over-year, gross margin also strengthened, with gross profit increasing and cost of revenue declining compared to the same quarter last year.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

9.1%

Gross profit

$766.0M

Revenue

$8.5B

Cost of revenue

$7.7B

Quarter-over-quarter change

+0.8 pts

Year-over-year change

+1.0 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Feb 28, 2023$8.1B$661.0M$7.5B8.1%
May 31, 2023$8.5B$697.0M$7.8B8.2%
Aug 31, 2023$8.5B$766.0M$7.7B9.1%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

May 31, 2023

+0.8 pts

Year-over-year change

Aug 31, 2022

+1.0 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin improved sequentially and year-over-year, driven by a combination of higher gross profit and lower cost of revenue relative to revenue.

Sequentially, gross margin improved from the prior quarter, as gross profit rose while cost of revenue fell. Year-over-year, gross margin also strengthened, with gross profit increasing and cost of revenue declining compared to the same quarter last year.

Monitor the trend in cost of revenue, as its decline contributed to the gross margin improvement in both comparisons.