Phillips 66 stock research
FY2023 Q1
Phillips 66 (PSX) Gross Margin — Quarter Ended Mar 31, 2023
Revenue decreased from the prior quarter while cost of revenue fell more sharply, causing gross profit to remain flat and gross margin to improve. Compared with the same quarter a year ago, revenue was lower but gross profit and gross margin were higher, driven by a proportionally larger reduction in cost of revenue.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue decreased from the prior quarter while cost of revenue fell more sharply, causing gross profit to remain flat and gross margin to improve. Compared with the same quarter a year ago, revenue was lower but gross profit and gross margin were higher, driven by a proportionally larger reduction in cost of revenue.
- The strongest observable margin driver is the decline in cost of revenue relative to revenue, which supported gross margin expansion even as revenue fell.
- Gross margin improved compared to the prior quarter and strengthened significantly compared to the same quarter a year ago.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
14.7%
Gross profit
$5.1B
Revenue
$34.4B
Cost of revenue
$29.3B
Quarter-over-quarter change
n/a
Year-over-year change
+7.3 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 | $34.4B | $5.1B | $29.3B | 14.7% |
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
+7.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the decline in cost of revenue relative to revenue, which supported gross margin expansion even as revenue fell.
Gross margin improved compared to the prior quarter and strengthened significantly compared to the same quarter a year ago.
Monitor future changes in cost of revenue relative to revenue to assess whether margin improvement can be sustained.