Johnson Controls International plc stock research
FY2023 Q3
Johnson Controls International (JCI) Gross Margin — Quarter Ended Jun 30, 2023
Revenue, gross profit, and cost of revenue all increased. Gross profit grew at a faster pace than revenue, leading to a higher gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q3
Revenue, gross profit, and cost of revenue all increased. Gross profit grew at a faster pace than revenue, leading to a higher gross margin.
- The strongest observable margin driver is the growth in revenue relative to cost of revenue, as gross profit increased more than proportionally.
- Gross margin was higher than both the immediately preceding quarter and the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.1%
Gross profit
$2.4B
Revenue
$7.1B
Cost of revenue
$4.7B
Quarter-over-quarter change
+0.6 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $6.7B | $2.2B | $4.4B | 33.5% |
| Jun 30, 2023 | $7.1B | $2.4B | $4.7B | 34.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+0.6 pts
Year-over-year change
Jun 30, 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 growth in revenue relative to cost of revenue, as gross profit increased more than proportionally.
Gross margin was higher than both the immediately preceding quarter and the same quarter one year earlier.
The filing notes an increase in inventory due to seasonality; inventory levels should be monitored for potential impact on future margins.