ON Semiconductor Corporation stock research
FY2023 Q3
ON Semiconductor (ON) Gross Margin — Quarter Ended Sep 29, 2023
Revenue was unchanged from the same quarter last year, but gross profit declined and cost of revenue increased, resulting in a lower gross margin. Compared with the prior quarter, revenue rose slightly while gross margin was nearly flat, showing a slight weakening.
Gross margin takeaway
Quarter ended Sep 29, 2023 · FY2023 Q3
Revenue was unchanged from the same quarter last year, but gross profit declined and cost of revenue increased, resulting in a lower gross margin. Compared with the prior quarter, revenue rose slightly while gross margin was nearly flat, showing a slight weakening.
- The decline in gross margin was primarily driven by cost growth that outpaced revenue growth, compressing gross profit.
- Gross margin was lower than the same quarter last year and essentially stable relative to the prior quarter, reflecting a mixed performance across the comparison periods.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.3%
Gross profit
$1.0B
Revenue
$2.2B
Cost of revenue
$1.2B
Quarter-over-quarter change
-0.2 pts
Year-over-year change
-1.0 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% |
| Jun 30, 2023 | $2.1B | $993.4M | $1.1B | 47.4% |
| Sep 29, 2023 | $2.2B | $1.0B | $1.2B | 47.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.2 pts
Year-over-year change
Sep 30, 2022
-1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross margin was primarily driven by cost growth that outpaced revenue growth, compressing gross profit.
Gross margin was lower than the same quarter last year and essentially stable relative to the prior quarter, reflecting a mixed performance across the comparison periods.
Monitor the trend of cost of revenue relative to revenue to assess future gross margin direction.