Keysight Technologies, Inc. stock research
FY2023 Q3
Keysight Technologies (KEYS) Gross Margin — Quarter Ended Jul 31, 2023
Revenue remained stable compared to both the prior quarter and the same quarter a year ago. Gross profit and gross margin weakened sequentially but improved year-over-year, driven by changes in cost of revenue.
Gross margin takeaway
Quarter ended Jul 31, 2023 · FY2023 Q3
Revenue remained stable compared to both the prior quarter and the same quarter a year ago. Gross profit and gross margin weakened sequentially but improved year-over-year, driven by changes in cost of revenue.
- The sequential decline in gross margin was driven by a higher cost of revenue relative to stable revenue, while the year-over-year improvement reflected a lower cost of revenue compared to the prior year.
- Compared to the prior quarter, gross margin weakened as cost of revenue increased while revenue was unchanged. Compared to the same quarter a year ago, gross margin improved as cost of revenue decreased and gross profit increased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
64.8%
Gross profit
$896.0M
Revenue
$1.4B
Cost of revenue
$486.0M
Quarter-over-quarter change
-0.6 pts
Year-over-year change
+1.1 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% |
| Jul 31, 2023 | $1.4B | $896.0M | $486.0M | 64.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 30, 2023
-0.6 pts
Year-over-year change
Jul 31, 2022
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential decline in gross margin was driven by a higher cost of revenue relative to stable revenue, while the year-over-year improvement reflected a lower cost of revenue compared to the prior year.
Compared to the prior quarter, gross margin weakened as cost of revenue increased while revenue was unchanged. Compared to the same quarter a year ago, gross margin improved as cost of revenue decreased and gross profit increased.
Monitor the trajectory of cost of revenue relative to revenue in subsequent quarters to assess margin sustainability.