RO

Rockwell Automation, Inc. stock research

Jun 30, 2023

FY2023 Q3

Rockwell Automation (ROK) Gross Margin — Quarter Ended Jun 30, 2023

Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue remained at a similar level, resulting in a slightly lower gross margin. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved modestly.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q3

Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue remained at a similar level, resulting in a slightly lower gross margin. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved modestly.

  • The gross margin was relatively stable across all three periods, with the current quarter showing a slight weakening from the prior quarter but a slight improvement from the year-ago quarter. The relationship between revenue and cost of revenue remained broadly consistent, indicating no major shift in the underlying margin structure.
  • Compared to the immediately preceding quarter, revenue and gross profit were lower, while cost of revenue was essentially unchanged, leading to a slightly weakened gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, with gross margin showing a modest improvement.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

40.9%

Gross profit

$915.4M

Revenue

$2.2B

Cost of revenue

$1.3B

Quarter-over-quarter change

-0.1 pts

Year-over-year change

+0.1 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$2.3B$932.5M$1.3B41.0%
Jun 30, 2023$2.2B$915.4M$1.3B40.9%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2023

-0.1 pts

Year-over-year change

Jun 30, 2022

+0.1 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin was relatively stable across all three periods, with the current quarter showing a slight weakening from the prior quarter but a slight improvement from the year-ago quarter. The relationship between revenue and cost of revenue remained broadly consistent, indicating no major shift in the underlying margin structure.

Compared to the immediately preceding quarter, revenue and gross profit were lower, while cost of revenue was essentially unchanged, leading to a slightly weakened gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, with gross margin showing a modest improvement.

Monitor the trajectory of cost of revenue relative to revenue, as its stability in the current quarter versus the prior quarter contrasted with the year-ago increase.