QUALCOMM Incorporated stock research
FY2023 Q2
QUALCOMM (QCOM) Gross Margin — Quarter Ended Mar 26, 2023
Revenue decreased compared to both the prior quarter and the same quarter last year, while cost of revenue declined at a slower pace, resulting in lower gross profit and a weakened gross margin. The relationship among the metrics shows that the decline in gross profit was proportionally larger than the decline in revenue, causing the gross margin to contract.
Gross margin takeaway
Quarter ended Mar 26, 2023 · FY2023 Q2
Revenue decreased compared to both the prior quarter and the same quarter last year, while cost of revenue declined at a slower pace, resulting in lower gross profit and a weakened gross margin. The relationship among the metrics shows that the decline in gross profit was proportionally larger than the decline in revenue, causing the gross margin to contract.
- The strongest observable margin driver is the relative movement of cost of revenue compared to revenue; cost of revenue decreased less than revenue, which directly compressed gross margin. This pattern is consistent across both sequential and year-over-year comparisons.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all lower, while cost of revenue was higher. Compared to the same quarter one year earlier, all four metrics—revenue, gross profit, cost of revenue, and gross margin—were lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
55.2%
Gross profit
$5.1B
Revenue
$9.3B
Cost of revenue
$4.2B
Quarter-over-quarter change
n/a
Year-over-year change
-3.1 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 26, 2023 | $9.3B | $5.1B | $4.2B | 55.2% |
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 27, 2022
-3.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relative movement of cost of revenue compared to revenue; cost of revenue decreased less than revenue, which directly compressed gross margin. This pattern is consistent across both sequential and year-over-year comparisons.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all lower, while cost of revenue was higher. Compared to the same quarter one year earlier, all four metrics—revenue, gross profit, cost of revenue, and gross margin—were lower.
Monitor whether cost of revenue continues to decline at a slower rate than revenue in future quarters, as this dynamic has been the primary factor behind the weakening gross margin.