Eli Lilly and Company stock research
FY2023 Q3
Eli Lilly and (LLY) Gross Margin — Quarter Ended Sep 30, 2023
Revenue increased compared to both the prior quarter and the same quarter last year. Cost of revenue also rose, but at a slower pace, resulting in higher gross profit and an improved gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue increased compared to both the prior quarter and the same quarter last year. Cost of revenue also rose, but at a slower pace, resulting in higher gross profit and an improved gross margin.
- The gross margin improvement was driven by revenue growing faster than cost of revenue relative to both comparison periods.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin all increased, while cost of revenue was higher. The same pattern held when compared to the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.4%
Gross profit
$7.6B
Revenue
$9.5B
Cost of revenue
$1.9B
Quarter-over-quarter change
+2.2 pts
Year-over-year change
+3.2 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% |
| Sep 30, 2023 | $9.5B | $7.6B | $1.9B | 80.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+2.2 pts
Year-over-year change
Sep 30, 2022
+3.2 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 growing faster than cost of revenue relative to both comparison periods.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin all increased, while cost of revenue was higher. The same pattern held when compared to the same quarter one year earlier.
Monitor the trend of cost of revenue, as it increased in absolute terms in both comparisons.