Oracle Corporation stock research
FY2023 Q4
Oracle (ORCL) Gross Margin — Quarter Ended May 31, 2023
Revenue and gross profit both increased compared to the immediately preceding quarter, while cost of revenue also rose. Gross margin improved slightly, reflecting a higher proportion of revenue retained as gross profit.
Gross margin takeaway
Quarter ended May 31, 2023 · FY2023 Q4
Revenue and gross profit both increased compared to the immediately preceding quarter, while cost of revenue also rose. Gross margin improved slightly, reflecting a higher proportion of revenue retained as gross profit.
- The strongest observable margin driver is the increase in gross profit relative to revenue, as gross margin rose from the prior quarter. This indicates that cost of revenue grew at a slower pace than revenue.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher. Compared to the same quarter one year earlier, revenue and cost of revenue were lower, while gross profit was higher and gross margin improved substantially.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
73.0%
Gross profit
$10.1B
Revenue
$13.8B
Cost of revenue
$3.7B
Quarter-over-quarter change
+0.8 pts
Year-over-year change
+50.8 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 |
|---|---|---|---|---|
| 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% |
| May 31, 2023 | $13.8B | $10.1B | $3.7B | 73.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 28, 2023
+0.8 pts
Year-over-year change
FY2022 FY
+50.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in gross profit relative to revenue, as gross margin rose from the prior quarter. This indicates that cost of revenue grew at a slower pace than revenue.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher. Compared to the same quarter one year earlier, revenue and cost of revenue were lower, while gross profit was higher and gross margin improved substantially.
Monitor the trend in cost of revenue relative to revenue, as its growth rate directly impacts gross margin stability.