QUALCOMM Incorporated stock research
FY2023 Q3
QUALCOMM (QCOM) Gross Margin — Quarter Ended Jun 25, 2023
Revenue and gross profit decreased compared to both the preceding quarter and the same quarter last year. Gross margin remained relatively stable from the prior quarter but was lower than the year-ago period, as cost of revenue declined in alignment with revenue changes.
Gross margin takeaway
Quarter ended Jun 25, 2023 · FY2023 Q3
Revenue and gross profit decreased compared to both the preceding quarter and the same quarter last year. Gross margin remained relatively stable from the prior quarter but was lower than the year-ago period, as cost of revenue declined in alignment with revenue changes.
- The gross margin was essentially stable sequentially, indicating that the relationship between revenue and cost of revenue remained consistent. Compared to a year ago, the margin weakened, reflecting a larger reduction in revenue relative to cost of revenue.
- Sequentially, revenue, gross profit, and cost of revenue all decreased, with gross margin experiencing a slight decline. Year over year, all three metrics were lower, and gross margin weakened more notably.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
55.1%
Gross profit
$4.7B
Revenue
$8.5B
Cost of revenue
$3.8B
Quarter-over-quarter change
-0.1 pts
Year-over-year change
-0.8 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% |
| Jun 25, 2023 | $8.5B | $4.7B | $3.8B | 55.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 26, 2023
-0.1 pts
Year-over-year change
Jun 26, 2022
-0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin was essentially stable sequentially, indicating that the relationship between revenue and cost of revenue remained consistent. Compared to a year ago, the margin weakened, reflecting a larger reduction in revenue relative to cost of revenue.
Sequentially, revenue, gross profit, and cost of revenue all decreased, with gross margin experiencing a slight decline. Year over year, all three metrics were lower, and gross margin weakened more notably.
Monitor the trajectory of revenue and cost of revenue to see if gross margin stabilizes or continues to weaken.