S&P Global Inc. stock research
FY2023 Q2
S&P Global (SPGI) Gross Margin — Quarter Ended Jun 30, 2023
Revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross profit remained stable sequentially while cost of revenue declined, resulting in an improved gross margin; year-over-year, gross profit rose alongside revenue, with gross margin showing a slight improvement.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross profit remained stable sequentially while cost of revenue declined, resulting in an improved gross margin; year-over-year, gross profit rose alongside revenue, with gross margin showing a slight improvement.
- The strongest observable margin driver is the reduction in cost of revenue relative to revenue, which lifted gross margin sequentially despite lower revenue.
- Compared to the immediately preceding quarter, gross margin improved as cost of revenue fell faster than revenue. Versus the same quarter one year earlier, gross margin was slightly higher, supported by a larger gross profit on higher revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
66.9%
Gross profit
$2.1B
Revenue
$3.1B
Cost of revenue
$1.0B
Quarter-over-quarter change
+1.3 pts
Year-over-year change
+0.6 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% |
| Jun 30, 2023 | $3.1B | $2.1B | $1.0B | 66.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.3 pts
Year-over-year change
Jun 30, 2022
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the reduction in cost of revenue relative to revenue, which lifted gross margin sequentially despite lower revenue.
Compared to the immediately preceding quarter, gross margin improved as cost of revenue fell faster than revenue. Versus the same quarter one year earlier, gross margin was slightly higher, supported by a larger gross profit on higher revenue.
Monitor the trajectory of cost of revenue, as its decline was the primary factor behind the sequential margin improvement.