3M Company stock research
FY2023 Q2
3M (MMM) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit increased compared to the prior quarter, while cost of revenue remained stable, leading to an improved gross margin. Compared to the same quarter last year, revenue and gross profit were lower, and gross margin weakened slightly.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit increased compared to the prior quarter, while cost of revenue remained stable, leading to an improved gross margin. Compared to the same quarter last year, revenue and gross profit were lower, and gross margin weakened slightly.
- The primary observable driver of the quarter's gross margin improvement relative to the prior quarter was the combination of higher revenue and unchanged cost of revenue. This relationship directly expanded the margin.
- Gross margin improved from the immediately preceding quarter but was slightly lower than the same quarter one year earlier. Revenue and gross profit followed a similar pattern: higher than the prior quarter but lower than the year-ago period.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
40.7%
Gross profit
$2.6B
Revenue
$6.3B
Cost of revenue
$3.7B
Quarter-over-quarter change
+2.5 pts
Year-over-year change
-0.8 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 | $6.1B | $2.3B | $3.7B | 38.2% |
| Jun 30, 2023 | $6.3B | $2.6B | $3.7B | 40.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+2.5 pts
Year-over-year change
Jun 30, 2022
-0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the quarter's gross margin improvement relative to the prior quarter was the combination of higher revenue and unchanged cost of revenue. This relationship directly expanded the margin.
Gross margin improved from the immediately preceding quarter but was slightly lower than the same quarter one year earlier. Revenue and gross profit followed a similar pattern: higher than the prior quarter but lower than the year-ago period.
Monitor the relationship between revenue growth and cost of revenue changes in upcoming quarters.