ON Semiconductor Corporation stock research
FY2023 Q1
ON Semiconductor (ON) Gross Margin — Quarter Ended Mar 31, 2023
Revenue decreased compared to the prior quarter, while gross profit and cost of revenue also declined. Gross margin weakened relative to both the previous quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue decreased compared to the prior quarter, while gross profit and cost of revenue also declined. Gross margin weakened relative to both the previous quarter and the same quarter last year.
- The decline in gross margin was driven by a proportionally larger decrease in gross profit relative to revenue, indicating that cost of revenue did not fall as quickly as revenue.
- Compared to the prior quarter, revenue was lower and gross margin weakened. Versus the same quarter last year, revenue was higher but gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
46.8%
Gross profit
$917.5M
Revenue
$2.0B
Cost of revenue
$1.0B
Quarter-over-quarter change
n/a
Year-over-year change
-2.6 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 | $2.0B | $917.5M | $1.0B | 46.8% |
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
Apr 1, 2022
-2.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross margin was driven by a proportionally larger decrease in gross profit relative to revenue, indicating that cost of revenue did not fall as quickly as revenue.
Compared to the prior quarter, revenue was lower and gross margin weakened. Versus the same quarter last year, revenue was higher but gross margin was lower.
Monitor the trend in cost of revenue relative to revenue to assess whether margin pressure persists.