The Procter & Gamble Company stock research
FY2023 Q4
The Procter & Gamble (PG) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue decreased year-over-year. Gross margin improved sequentially and rose more sharply from the year-ago period.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue decreased year-over-year. Gross margin improved sequentially and rose more sharply from the year-ago period.
- The most notable margin driver is the combination of higher revenue and lower cost of revenue relative to the same quarter last year, which amplified gross profit growth and lifted the gross margin.
- Compared to the prior quarter, gross margin edged higher as revenue growth slightly outpaced cost of revenue growth. Compared to the same quarter one year ago, gross margin strengthened substantially, driven by both revenue growth and a reduction in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
48.4%
Gross profit
$9.9B
Revenue
$20.6B
Cost of revenue
$10.6B
Quarter-over-quarter change
+0.2 pts
Year-over-year change
+3.7 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% |
| Jun 30, 2023 | $20.6B | $9.9B | $10.6B | 48.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+0.2 pts
Year-over-year change
Jun 30, 2022
+3.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable margin driver is the combination of higher revenue and lower cost of revenue relative to the same quarter last year, which amplified gross profit growth and lifted the gross margin.
Compared to the prior quarter, gross margin edged higher as revenue growth slightly outpaced cost of revenue growth. Compared to the same quarter one year ago, gross margin strengthened substantially, driven by both revenue growth and a reduction in cost of revenue.
Monitor the potential impact of geopolitical conditions and trade policies on cost of revenue, as discussed in the company's risk factors.