Leidos Holdings, Inc. stock research
FY2023 Q2
Leidos Holdings (LDOS) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin improved from the previous quarter but remained unchanged from the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin improved from the previous quarter but remained unchanged from the same quarter one year earlier.
- The improvement in gross margin from the prior quarter was driven by gross profit growing faster than revenue. The year-over-year stability in gross margin indicates that the relationship among revenue, cost of revenue, and gross profit remained consistent.
- Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
14.2%
Gross profit
$542.0M
Revenue
$3.8B
Cost of revenue
$3.3B
Quarter-over-quarter change
+1.3 pts
Year-over-year change
-0.0 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $3.7B | $475.0M | $3.2B | 12.9% |
| Jun 30, 2023 | $3.8B | $542.0M | $3.3B | 14.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.3 pts
Year-over-year change
Jul 1, 2022
-0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin from the prior quarter was driven by gross profit growing faster than revenue. The year-over-year stability in gross margin indicates that the relationship among revenue, cost of revenue, and gross profit remained consistent.
Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was stable.
Monitor whether the relationship between revenue growth and cost of revenue growth continues to support gross margin improvement.