NXP Semiconductors N.V. stock research
FY2023 Q2
NXP Semiconductors N.V. (NXPI) Gross Margin — Quarter Ended Jul 2, 2023
Revenue increased from the prior quarter while cost of revenue remained unchanged, driving gross profit and gross margin higher. Compared to the same quarter last year, revenue and cost of revenue were similar, but gross margin improved slightly.
Gross margin takeaway
Quarter ended Jul 2, 2023 · FY2023 Q2
Revenue increased from the prior quarter while cost of revenue remained unchanged, driving gross profit and gross margin higher. Compared to the same quarter last year, revenue and cost of revenue were similar, but gross margin improved slightly.
- The strongest observable margin driver is the sequential revenue growth against stable cost of revenue, which allowed gross profit to expand and margin to improve. This relationship indicates that revenue growth directly contributed to margin strength.
- Revenue was higher sequentially and flat year-over-year. Gross margin improved both compared to the prior quarter and the same quarter last year, while cost of revenue remained steady across all periods.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
57.0%
Gross profit
$1.9B
Revenue
$3.3B
Cost of revenue
$1.4B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+0.2 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 |
|---|---|---|---|---|
| Apr 2, 2023 | $3.1B | $1.8B | $1.4B | 56.7% |
| Jul 2, 2023 | $3.3B | $1.9B | $1.4B | 57.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 2, 2023
+0.3 pts
Year-over-year change
Jul 3, 2022
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sequential revenue growth against stable cost of revenue, which allowed gross profit to expand and margin to improve. This relationship indicates that revenue growth directly contributed to margin strength.
Revenue was higher sequentially and flat year-over-year. Gross margin improved both compared to the prior quarter and the same quarter last year, while cost of revenue remained steady across all periods.
Monitor whether revenue growth can be sustained, as year-over-year revenue was unchanged despite sequential improvement.