LD

Leidos Holdings, Inc. stock research

Mar 31, 2023

FY2023 Q1

Leidos Holdings (LDOS) Gross Margin — Quarter Ended Mar 31, 2023

Revenue was stable compared to the prior quarter, while gross profit and gross margin both decreased. Compared to the same quarter one year earlier, revenue was higher but gross profit and gross margin were lower.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q1

Revenue was stable compared to the prior quarter, while gross profit and gross margin both decreased. Compared to the same quarter one year earlier, revenue was higher but gross profit and gross margin were lower.

  • The decline in gross margin from both the prior quarter and the year-ago quarter was driven by a larger increase in cost of revenue relative to revenue growth.
  • Compared to the immediately preceding quarter, revenue was essentially unchanged, but gross profit and gross margin were lower. Compared to the same quarter one year earlier, revenue was higher, yet gross profit and gross margin were lower.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

12.9%

Gross profit

$475.0M

Revenue

$3.7B

Cost of revenue

$3.2B

Quarter-over-quarter change

n/a

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.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$3.7B$475.0M$3.2B12.9%

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

Apr 1, 2022

-1.3 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The decline in gross margin from both the prior quarter and the year-ago quarter was driven by a larger increase in cost of revenue relative to revenue growth.

Compared to the immediately preceding quarter, revenue was essentially unchanged, but gross profit and gross margin were lower. Compared to the same quarter one year earlier, revenue was higher, yet gross profit and gross margin were lower.

Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.

LDOS Gross Margin — Quarter Ended Mar 31, 2023