PepsiCo, Inc. stock research
FY2023 Q3
PepsiCo (PEP) Gross Margin — Quarter Ended Sep 9, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter a year earlier. Cost of revenue also rose, leading to a gross margin that was slightly lower than the prior quarter but higher than the year-ago period.
Gross margin takeaway
Quarter ended Sep 9, 2023 · FY2023 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter a year earlier. Cost of revenue also rose, leading to a gross margin that was slightly lower than the prior quarter but higher than the year-ago period.
- The strongest observable margin driver is the year-over-year improvement in gross margin, as gross profit grew at a faster pace than cost of revenue relative to the same quarter last year.
- Sequentially, gross margin weakened modestly from the prior quarter, while revenue and gross profit were higher. Year-over-year, gross margin improved, with revenue and gross profit both increasing.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
54.5%
Gross profit
$12.8B
Revenue
$23.5B
Cost of revenue
$10.7B
Quarter-over-quarter change
-0.2 pts
Year-over-year change
+1.4 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 25, 2023 | $17.8B | $9.9B | $8.0B | 55.2% |
| Jun 17, 2023 | $22.3B | $12.2B | $10.1B | 54.7% |
| Sep 9, 2023 | $23.5B | $12.8B | $10.7B | 54.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 17, 2023
-0.2 pts
Year-over-year change
Sep 3, 2022
+1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the year-over-year improvement in gross margin, as gross profit grew at a faster pace than cost of revenue relative to the same quarter last year.
Sequentially, gross margin weakened modestly from the prior quarter, while revenue and gross profit were higher. Year-over-year, gross margin improved, with revenue and gross profit both increasing.
Monitor the recurring impact of mark-to-market adjustments and restructuring charges on cost of sales, as detailed in the filing's items affecting comparability.