Keysight Technologies, Inc. stock research
FY2023 Q2
Keysight Technologies (KEYS) Gross Margin — Quarter Ended Apr 30, 2023
Revenue stayed stable compared with the prior quarter and the year-ago quarter, while gross profit improved and cost of revenue declined on both comparisons, resulting in a higher gross margin. The gross margin strengthened sequentially and year-over-year, driven by the combination of a lower cost of revenue and a higher gross profit on essentially flat revenue.
Gross margin takeaway
Quarter ended Apr 30, 2023 · FY2023 Q2
Revenue stayed stable compared with the prior quarter and the year-ago quarter, while gross profit improved and cost of revenue declined on both comparisons, resulting in a higher gross margin. The gross margin strengthened sequentially and year-over-year, driven by the combination of a lower cost of revenue and a higher gross profit on essentially flat revenue.
- The strongest observable margin driver was the reduction in cost of revenue relative to the prior quarter and the year-ago quarter, which supported a higher gross profit on unchanged revenue.
- Compared with the immediately preceding quarter, gross margin was higher as revenue remained the same while gross profit increased and cost of revenue decreased. Compared with the same quarter one year earlier, gross margin was also higher, with revenue unchanged, gross profit higher, and cost of revenue lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
65.4%
Gross profit
$909.0M
Revenue
$1.4B
Cost of revenue
$481.0M
Quarter-over-quarter change
+1.5 pts
Year-over-year change
+1.8 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 |
|---|---|---|---|---|
| Jan 31, 2023 | $1.4B | $883.0M | $498.0M | 63.9% |
| Apr 30, 2023 | $1.4B | $909.0M | $481.0M | 65.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2023
+1.5 pts
Year-over-year change
Apr 30, 2022
+1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the reduction in cost of revenue relative to the prior quarter and the year-ago quarter, which supported a higher gross profit on unchanged revenue.
Compared with the immediately preceding quarter, gross margin was higher as revenue remained the same while gross profit increased and cost of revenue decreased. Compared with the same quarter one year earlier, gross margin was also higher, with revenue unchanged, gross profit higher, and cost of revenue lower.
Monitor whether the cost of revenue reduction persists in future quarters, as it has been a key factor in the margin improvement.