Oracle Corporation stock research
FY2023 Q3
Oracle (ORCL) Gross Margin — Quarter Ended Feb 28, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. The gross margin weakened year over year but was stable sequentially, as the cost of revenue rose more than proportionally relative to revenue on an annual basis.
Gross margin takeaway
Quarter ended Feb 28, 2023 · FY2023 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. The gross margin weakened year over year but was stable sequentially, as the cost of revenue rose more than proportionally relative to revenue on an annual basis.
- The gross margin was slightly lower than the preceding quarter but significantly lower than the year-ago quarter, indicating that the relationship between cost of revenue and revenue shifted year over year. The ratio of cost of revenue to revenue was higher in the current period than in the same quarter last year.
- Compared to the immediately preceding quarter, revenue and gross profit were higher while the gross margin was slightly lower, reflecting a nearly stable cost structure. Versus the same quarter last year, revenue and gross profit were higher but gross margin weakened, as cost of revenue increased at a faster pace than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
72.3%
Gross profit
$9.0B
Revenue
$12.4B
Cost of revenue
$3.4B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
n/a
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 |
|---|---|---|---|---|
| Aug 31, 2022 | $11.4B | $8.4B | $3.0B | 73.5% |
| Nov 30, 2022 | $12.3B | $8.9B | $3.4B | 72.6% |
| Feb 28, 2023 | $12.4B | $9.0B | $3.4B | 72.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 30, 2022
-0.4 pts
Year-over-year change
Year-ago quarter unavailable
n/a
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin was slightly lower than the preceding quarter but significantly lower than the year-ago quarter, indicating that the relationship between cost of revenue and revenue shifted year over year. The ratio of cost of revenue to revenue was higher in the current period than in the same quarter last year.
Compared to the immediately preceding quarter, revenue and gross profit were higher while the gross margin was slightly lower, reflecting a nearly stable cost structure. Versus the same quarter last year, revenue and gross profit were higher but gross margin weakened, as cost of revenue increased at a faster pace than revenue.
Monitor the trend in the ratio of cost of revenue to revenue, which increased year over year and will be important for future margin stability.