Johnson Controls International plc stock research
FY2023 Q4
Johnson Controls International (JCI) Gross Margin — Quarter Ended Sep 30, 2023
Revenue decreased from the previous quarter while gross profit also declined, but the gross margin improved as cost of revenue fell more sharply. Compared to the same quarter last year, revenue was higher yet gross margin weakened because cost of revenue grew at a faster pace than revenue.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q4
Revenue decreased from the previous quarter while gross profit also declined, but the gross margin improved as cost of revenue fell more sharply. Compared to the same quarter last year, revenue was higher yet gross margin weakened because cost of revenue grew at a faster pace than revenue.
- The gross margin strengthened sequentially as cost of revenue declined proportionally more than revenue, but weakened year over year as cost growth outpaced revenue growth.
- Sequentially, gross margin improved despite lower revenue, indicating a favorable shift in cost efficiency. Year over year, gross margin declined even with higher revenue, reflecting a less favorable cost structure relative to sales.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.6%
Gross profit
$1.0B
Revenue
$2.4B
Cost of revenue
$1.4B
Quarter-over-quarter change
+8.5 pts
Year-over-year change
-7.9 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% |
| Sep 30, 2023 | $2.4B | $1.0B | $1.4B | 42.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+8.5 pts
Year-over-year change
Sep 30, 2022
-7.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin strengthened sequentially as cost of revenue declined proportionally more than revenue, but weakened year over year as cost growth outpaced revenue growth.
Sequentially, gross margin improved despite lower revenue, indicating a favorable shift in cost efficiency. Year over year, gross margin declined even with higher revenue, reflecting a less favorable cost structure relative to sales.
Monitor the trajectory of revenue, as the sequential drop was significant and could pressure future margin levels.