The Procter & Gamble Company stock research
FY2023 Q3
The Procter & Gamble (PG) Gross Margin — Quarter Ended Mar 31, 2023
Revenue decreased from the prior quarter, but gross profit declined less, leading to an improved gross margin. Compared to the same quarter last year, revenue and gross profit both increased, with gross profit growing faster, resulting in a higher gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q3
Revenue decreased from the prior quarter, but gross profit declined less, leading to an improved gross margin. Compared to the same quarter last year, revenue and gross profit both increased, with gross profit growing faster, resulting in a higher gross margin.
- The margin improvement is associated with a proportionally larger decrease in cost of revenue compared to revenue on a sequential basis, and a proportionally smaller increase year-over-year.
- Sequentially, gross margin improved from the prior quarter. Year-over-year, gross margin also increased compared to the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
48.2%
Gross profit
$9.7B
Revenue
$20.1B
Cost of revenue
$10.4B
Quarter-over-quarter change
n/a
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 31, 2023 | $20.1B | $9.7B | $10.4B | 48.2% |
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
Mar 31, 2022
+1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The margin improvement is associated with a proportionally larger decrease in cost of revenue compared to revenue on a sequential basis, and a proportionally smaller increase year-over-year.
Sequentially, gross margin improved from the prior quarter. Year-over-year, gross margin also increased compared to the same quarter one year earlier.
Monitor the company's ability to manage foreign currency fluctuations and economic volatility, as noted in the risk factors section of the filing.