Lockheed Martin Corporation stock research
FY2023 Q3
Lockheed Martin (LMT) Gross Margin — Quarter Ended Sep 24, 2023
For the quarter, revenue increased compared to both the prior quarter and the same quarter last year, while gross profit decreased slightly. Consequently, gross margin weakened as cost of revenue grew at a faster pace than revenue.
Gross margin takeaway
Quarter ended Sep 24, 2023 · FY2023 Q3
For the quarter, revenue increased compared to both the prior quarter and the same quarter last year, while gross profit decreased slightly. Consequently, gross margin weakened as cost of revenue grew at a faster pace than revenue.
- The primary observable driver of the margin change is the increase in cost of revenue relative to revenue, which reduced gross profit despite higher revenue.
- Sequentially, gross margin declined from the prior quarter, and it was also lower than the same quarter one year earlier. Revenue improved in both comparisons, but cost of revenue rose more sharply.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
12.1%
Gross profit
$2.0B
Revenue
$16.9B
Cost of revenue
$14.8B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
-0.7 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% |
| Sep 24, 2023 | $16.9B | $2.0B | $14.8B | 12.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 25, 2023
-0.4 pts
Year-over-year change
Sep 25, 2022
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the margin change is the increase in cost of revenue relative to revenue, which reduced gross profit despite higher revenue.
Sequentially, gross margin declined from the prior quarter, and it was also lower than the same quarter one year earlier. Revenue improved in both comparisons, but cost of revenue rose more sharply.
Monitor the trend of cost of revenue relative to revenue, as its growth rate has outpaced revenue growth in the current quarter.