Johnson Controls International plc stock research
FY2023 Q2
Johnson Controls International (JCI) Gross Margin — Quarter Ended Mar 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, however, weakened relative to the immediately preceding quarter, but improved compared to the year-ago period.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q2
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, however, weakened relative to the immediately preceding quarter, but improved compared to the year-ago period.
- The year-over-year improvement in gross margin is the strongest observable driver, driven by revenue growth outpacing cost growth. Sequentially, gross margin declined as cost of revenue grew at a faster pace than revenue.
- Compared to the prior quarter, gross margin was lower. Relative to the same quarter one year ago, gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.5%
Gross profit
$2.2B
Revenue
$6.7B
Cost of revenue
$4.4B
Quarter-over-quarter change
n/a
Year-over-year change
+1.4 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 | $6.7B | $2.2B | $4.4B | 33.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year improvement in gross margin is the strongest observable driver, driven by revenue growth outpacing cost growth. Sequentially, gross margin declined as cost of revenue grew at a faster pace than revenue.
Compared to the prior quarter, gross margin was lower. Relative to the same quarter one year ago, gross margin was higher.
Monitor inventory levels and their potential impact on cost of revenue trends, as inventory increases were noted in the filing context.