Parker-Hannifin Corporation stock research
FY2023 Q3
Parker-Hannifin (PH) Gross Margin — Quarter Ended Mar 31, 2023
Revenue increased relative to the previous quarter and the same quarter last year, while cost of revenue also rose but at a slower pace, resulting in a higher gross profit and an improved gross margin. The gross margin for the current quarter was higher than both the immediately preceding quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q3
Revenue increased relative to the previous quarter and the same quarter last year, while cost of revenue also rose but at a slower pace, resulting in a higher gross profit and an improved gross margin. The gross margin for the current quarter was higher than both the immediately preceding quarter and the year-ago quarter.
- The strongest observable driver of margin improvement was that revenue growth outpaced the increase in cost of revenue, allowing gross profit to expand and the margin to rise.
- Compared with the previous quarter, revenue was higher, cost of revenue was slightly higher, and gross profit and gross margin both improved. Versus the same quarter one year earlier, revenue was higher, cost of revenue was higher, gross profit was higher, and gross margin was slightly higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.0%
Gross profit
$1.7B
Revenue
$5.1B
Cost of revenue
$3.3B
Quarter-over-quarter change
n/a
Year-over-year change
+0.3 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 | $5.1B | $1.7B | $3.3B | 34.0% |
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
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of margin improvement was that revenue growth outpaced the increase in cost of revenue, allowing gross profit to expand and the margin to rise.
Compared with the previous quarter, revenue was higher, cost of revenue was slightly higher, and gross profit and gross margin both improved. Versus the same quarter one year earlier, revenue was higher, cost of revenue was higher, gross profit was higher, and gross margin was slightly higher.
Monitor the relationship between revenue growth and cost of revenue growth to see if the current pace of margin expansion can be sustained.