Lockheed Martin Corporation stock research
FY2023 Q2
Lockheed Martin (LMT) Gross Margin — Quarter Ended Jun 25, 2023
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit also rose. Gross margin weakened relative to the prior quarter but improved compared to the same quarter one year earlier, as cost of revenue grew at a different rate than revenue.
Gross margin takeaway
Quarter ended Jun 25, 2023 · FY2023 Q2
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit also rose. Gross margin weakened relative to the prior quarter but improved compared to the same quarter one year earlier, as cost of revenue grew at a different rate than revenue.
- The strongest observable margin driver is the relationship between revenue and cost of revenue; revenue grew more than cost of revenue compared to the year-ago quarter, supporting margin improvement, but the opposite occurred sequentially.
- Compared to the prior quarter, gross margin was lower despite higher revenue and gross profit, indicating cost of revenue increased at a faster pace. Versus the same quarter last year, gross margin was higher, with revenue and gross profit both higher and cost of revenue growing less proportionally.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
12.5%
Gross profit
$2.1B
Revenue
$16.7B
Cost of revenue
$14.6B
Quarter-over-quarter change
-1.0 pts
Year-over-year change
-0.1 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 26, 2023 | $15.1B | $2.0B | $13.1B | 13.5% |
| Jun 25, 2023 | $16.7B | $2.1B | $14.6B | 12.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 26, 2023
-1.0 pts
Year-over-year change
Jun 26, 2022
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue; revenue grew more than cost of revenue compared to the year-ago quarter, supporting margin improvement, but the opposite occurred sequentially.
Compared to the prior quarter, gross margin was lower despite higher revenue and gross profit, indicating cost of revenue increased at a faster pace. Versus the same quarter last year, gross margin was higher, with revenue and gross profit both higher and cost of revenue growing less proportionally.
Monitor the trend in cost of revenue relative to revenue, as its growth rate directly influences gross margin direction.