Microchip Technology Incorporated stock research
FY2023 Q4
Microchip Technology (MCHP) Gross Margin — Quarter Ended Mar 31, 2023
For the quarter ended March 31, 2023, revenue and gross profit were stable compared to the prior quarter but higher than the same quarter last year. Gross margin improved slightly sequentially and more notably year-over-year, reflecting that cost of revenue increased at a slower pace than revenue over the annual period.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q4
For the quarter ended March 31, 2023, revenue and gross profit were stable compared to the prior quarter but higher than the same quarter last year. Gross margin improved slightly sequentially and more notably year-over-year, reflecting that cost of revenue increased at a slower pace than revenue over the annual period.
- The strongest observable margin driver is the year-over-year improvement in gross margin, supported by revenue growth that exceeded the increase in cost of revenue.
- Compared to the immediately preceding quarter, gross margin was slightly higher while revenue and gross profit were essentially unchanged. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, with cost of revenue also higher but to a lesser degree.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
68.0%
Gross profit
$1.5B
Revenue
$2.2B
Cost of revenue
$713.4M
Quarter-over-quarter change
n/a
Year-over-year change
+1.9 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 | $2.2B | $1.5B | $713.4M | 68.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the year-over-year improvement in gross margin, supported by revenue growth that exceeded the increase in cost of revenue.
Compared to the immediately preceding quarter, gross margin was slightly higher while revenue and gross profit were essentially unchanged. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, with cost of revenue also higher but to a lesser degree.
Monitor the sequential trend in cost of revenue, which increased while revenue remained flat.