S&P Global Inc. stock research
FY2023 Q1
S&P Global (SPGI) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year. However, gross margin weakened slightly relative to the prior quarter and more notably compared to the year-ago period, as cost of revenue grew faster than revenue.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year. However, gross margin weakened slightly relative to the prior quarter and more notably compared to the year-ago period, as cost of revenue grew faster than revenue.
- The strongest observable driver was the relative increase in cost of revenue, which outpaced revenue growth, leading to margin compression.
- Compared to the prior quarter, gross margin was slightly lower. Compared to the same quarter one year earlier, gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
65.6%
Gross profit
$2.1B
Revenue
$3.2B
Cost of revenue
$1.1B
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 31, 2023 | $3.2B | $2.1B | $1.1B | 65.6% |
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
-3.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver was the relative increase in cost of revenue, which outpaced revenue growth, leading to margin compression.
Compared to the prior quarter, gross margin was slightly lower. Compared to the same quarter one year earlier, gross margin was lower.
Monitor the trend of cost of revenue relative to revenue, as its growth rate influences gross margin.