Rockwell Automation, Inc. stock research
FY2023 Q4
Rockwell Automation (ROK) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue decreased relative to the prior quarter but increased versus the year-ago quarter. Gross margin improved significantly from both the preceding quarter and the same quarter one year earlier, driven by a larger proportion of revenue flowing through to gross profit.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue decreased relative to the prior quarter but increased versus the year-ago quarter. Gross margin improved significantly from both the preceding quarter and the same quarter one year earlier, driven by a larger proportion of revenue flowing through to gross profit.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue rose while cost of revenue fell sequentially, leading to a much higher gross profit and gross margin. This pattern contrasts with the prior quarter where cost of revenue exceeded revenue growth.
- Compared to the immediately preceding quarter, gross margin improved as revenue increased and cost of revenue decreased. Compared to the same quarter one year earlier, gross margin also improved, with revenue and gross profit higher while cost of revenue was slightly higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
68.7%
Gross profit
$1.8B
Revenue
$2.6B
Cost of revenue
$801.4M
Quarter-over-quarter change
+27.8 pts
Year-over-year change
+27.0 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 | $2.3B | $932.5M | $1.3B | 41.0% |
| Jun 30, 2023 | $2.2B | $915.4M | $1.3B | 40.9% |
| Sep 30, 2023 | $2.6B | $1.8B | $801.4M | 68.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+27.8 pts
Year-over-year change
Sep 30, 2022
+27.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue rose while cost of revenue fell sequentially, leading to a much higher gross profit and gross margin. This pattern contrasts with the prior quarter where cost of revenue exceeded revenue growth.
Compared to the immediately preceding quarter, gross margin improved as revenue increased and cost of revenue decreased. Compared to the same quarter one year earlier, gross margin also improved, with revenue and gross profit higher while cost of revenue was slightly higher.
Monitor whether cost of revenue remains stable or declines further in future quarters, as its recent decrease was a key factor in the gross margin improvement.