Johnson & Johnson stock research
FY2023 Q1
Johnson & Johnson (JNJ) Gross Margin — Quarter Ended Apr 2, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly relative to both periods, as cost of revenue rose more than revenue compared to the prior quarter and declined less than revenue compared to the year-ago quarter. The accompanying filing discusses risk factors and liquidity, including a notable increase in cash and cash equivalents.
Gross margin takeaway
Quarter ended Apr 2, 2023 · FY2023 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly relative to both periods, as cost of revenue rose more than revenue compared to the prior quarter and declined less than revenue compared to the year-ago quarter. The accompanying filing discusses risk factors and liquidity, including a notable increase in cash and cash equivalents.
- The primary observable driver of the gross margin change was the relationship between cost of revenue and revenue: cost of revenue increased at a faster pace than revenue when compared to the preceding quarter, and while cost of revenue decreased year-over-year, the decrease was proportionally smaller than the revenue increase.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was lower. Compared to the same quarter one year earlier, revenue and gross profit were higher, while gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
68.0%
Gross profit
$14.2B
Revenue
$20.9B
Cost of revenue
$6.7B
Quarter-over-quarter change
n/a
Year-over-year change
-1.7 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 |
|---|---|---|---|---|
| Apr 2, 2023 | $20.9B | $14.2B | $6.7B | 68.0% |
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
Apr 3, 2022
-1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the gross margin change was the relationship between cost of revenue and revenue: cost of revenue increased at a faster pace than revenue when compared to the preceding quarter, and while cost of revenue decreased year-over-year, the decrease was proportionally smaller than the revenue increase.
Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was lower. Compared to the same quarter one year earlier, revenue and gross profit were higher, while gross margin was lower.
Monitor the trend in cost of revenue relative to revenue, as it directly influences gross margin.