Keysight Technologies, Inc. stock research
FY2023 Q4
Keysight Technologies (KEYS) Gross Margin — Quarter Ended Oct 31, 2023
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Oct 31, 2023 · FY2023 Q4
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter one year earlier.
- The strongest observable margin driver is the relationship between cost of revenue and revenue: cost of revenue declined more sharply than revenue on a year-over-year basis, supporting gross margin improvement.
- Compared to the prior quarter, revenue and gross profit were lower, and gross margin weakened slightly. Compared to the same quarter one year earlier, revenue and gross profit were lower, but gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
64.4%
Gross profit
$844.0M
Revenue
$1.3B
Cost of revenue
$467.0M
Quarter-over-quarter change
-0.5 pts
Year-over-year change
+1.3 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% |
| Oct 31, 2023 | $1.3B | $844.0M | $467.0M | 64.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 31, 2023
-0.5 pts
Year-over-year change
Oct 31, 2022
+1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between cost of revenue and revenue: cost of revenue declined more sharply than revenue on a year-over-year basis, supporting gross margin improvement.
Compared to the prior quarter, revenue and gross profit were lower, and gross margin weakened slightly. Compared to the same quarter one year earlier, revenue and gross profit were lower, but gross margin improved.
Monitor the trajectory of cost of revenue relative to revenue, as its decline was a key factor in the year-over-year margin improvement.