Keysight Technologies, Inc. stock research
FY2023 Q1
Keysight Technologies (KEYS) Gross Margin — Quarter Ended Jan 31, 2023
Revenue was stable compared to the prior quarter, while gross profit decreased and cost of revenue declined. Gross margin improved slightly from the prior quarter but weakened compared to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jan 31, 2023 · FY2023 Q1
Revenue was stable compared to the prior quarter, while gross profit decreased and cost of revenue declined. Gross margin improved slightly from the prior quarter but weakened compared to the same quarter one year earlier.
- The strongest observable margin driver is the decline in cost of revenue relative to revenue, which supported the gross margin improvement from the prior quarter.
- Compared to the prior quarter, gross margin was higher despite lower gross profit, as cost of revenue decreased more than revenue. Compared to the same quarter one year earlier, gross margin was lower, with gross profit higher but cost of revenue increasing at a faster pace.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
63.9%
Gross profit
$883.0M
Revenue
$1.4B
Cost of revenue
$498.0M
Quarter-over-quarter change
n/a
Year-over-year change
-0.4 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 |
|---|---|---|---|---|
| Jan 31, 2023 | $1.4B | $883.0M | $498.0M | 63.9% |
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
Jan 31, 2022
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the decline in cost of revenue relative to revenue, which supported the gross margin improvement from the prior quarter.
Compared to the prior quarter, gross margin was higher despite lower gross profit, as cost of revenue decreased more than revenue. Compared to the same quarter one year earlier, gross margin was lower, with gross profit higher but cost of revenue increasing at a faster pace.
Monitor the trajectory of cost of revenue relative to revenue, as its movement directly influences gross margin direction.