Eli Lilly and Company stock research
FY2023 Q2
Eli Lilly and (LLY) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose but at a slower pace. As a result, gross margin improved sequentially and was slightly higher than the year-ago level.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose but at a slower pace. As a result, gross margin improved sequentially and was slightly higher than the year-ago level.
- The gross margin improvement was driven by revenue increasing more than cost of revenue relative to the prior quarter, leading to a higher gross profit share of revenue.
- Compared to the immediately preceding quarter, gross margin improved from a lower level, and revenue and gross profit were higher. Versus the same quarter one year earlier, gross margin was slightly higher, with revenue and gross profit also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
78.3%
Gross profit
$6.5B
Revenue
$8.3B
Cost of revenue
$1.8B
Quarter-over-quarter change
+1.6 pts
Year-over-year change
+0.3 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $7.0B | $5.3B | $1.6B | 76.6% |
| Jun 30, 2023 | $8.3B | $6.5B | $1.8B | 78.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.6 pts
Year-over-year change
Jun 30, 2022
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by revenue increasing more than cost of revenue relative to the prior quarter, leading to a higher gross profit share of revenue.
Compared to the immediately preceding quarter, gross margin improved from a lower level, and revenue and gross profit were higher. Versus the same quarter one year earlier, gross margin was slightly higher, with revenue and gross profit also higher.
Monitor the trend of cost of revenue relative to revenue to assess whether the margin improvement can be sustained.