Merck & Co., Inc. stock research
FY2023 Q2
Merck & (MRK) Gross Margin — Quarter Ended Jun 30, 2023
Revenue increased compared with both the prior quarter and the same period last year, while cost of revenue decreased year over year and rose only modestly sequentially. As a result, gross margin improved from both comparison periods.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue increased compared with both the prior quarter and the same period last year, while cost of revenue decreased year over year and rose only modestly sequentially. As a result, gross margin improved from both comparison periods.
- The most visible driver was a lower cost of revenue relative to revenue year over year, which allowed gross profit to expand more than proportionally.
- Gross margin improved compared with both the immediately preceding quarter and the same quarter one year earlier. The improvement was more pronounced on a year-over-year basis.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
73.2%
Gross profit
$11.0B
Revenue
$15.0B
Cost of revenue
$4.0B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+2.1 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 31, 2023 | $14.5B | $10.6B | $3.9B | 72.9% |
| Jun 30, 2023 | $15.0B | $11.0B | $4.0B | 73.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+0.3 pts
Year-over-year change
Jun 30, 2022
+2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most visible driver was a lower cost of revenue relative to revenue year over year, which allowed gross profit to expand more than proportionally.
Gross margin improved compared with both the immediately preceding quarter and the same quarter one year earlier. The improvement was more pronounced on a year-over-year basis.
Monitor whether cost of revenue continues to decline relative to revenue, as this has been a key factor in recent margin expansion.