Leidos Holdings, Inc. stock research
FY2023 Q3
Leidos Holdings (LDOS) Gross Margin — Quarter Ended Sep 29, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was higher in both comparisons. Gross margin improved relative to both periods, indicating that gross profit grew faster than cost of revenue.
Gross margin takeaway
Quarter ended Sep 29, 2023 · FY2023 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was higher in both comparisons. Gross margin improved relative to both periods, indicating that gross profit grew faster than cost of revenue.
- The gross margin strengthened sequentially and year-over-year, driven by a proportionally larger increase in gross profit relative to revenue growth. The margin improvement is observable in the rising ratio of gross profit to revenue.
- Compared to the immediately preceding quarter, revenue was higher, gross profit was higher, and gross margin improved. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
14.4%
Gross profit
$563.0M
Revenue
$3.9B
Cost of revenue
$3.3B
Quarter-over-quarter change
+0.2 pts
Year-over-year change
+0.9 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% |
| Sep 29, 2023 | $3.9B | $563.0M | $3.3B | 14.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.2 pts
Year-over-year change
Sep 30, 2022
+0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin strengthened sequentially and year-over-year, driven by a proportionally larger increase in gross profit relative to revenue growth. The margin improvement is observable in the rising ratio of gross profit to revenue.
Compared to the immediately preceding quarter, revenue was higher, gross profit was higher, and gross margin improved. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.
Monitor the trajectory of cost of revenue relative to revenue, as cost growth has accompanied revenue growth in both comparisons.