S&P Global Inc. stock research
FY2023 Q3
S&P Global (SPGI) Gross Margin — Quarter Ended Sep 30, 2023
Revenue was stable sequentially, and gross profit was unchanged, but cost of revenue declined slightly, leading to an improved gross margin. Compared to the same quarter last year, revenue and gross profit both increased, while cost of revenue rose at a slower pace, further strengthening the gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue was stable sequentially, and gross profit was unchanged, but cost of revenue declined slightly, leading to an improved gross margin. Compared to the same quarter last year, revenue and gross profit both increased, while cost of revenue rose at a slower pace, further strengthening the gross margin.
- The improvement in gross margin was driven by the favorable relationship between cost of revenue and revenue. Cost of revenue decreased slightly from the prior quarter while revenue held steady, and year-over-year revenue growth outpaced cost growth.
- Sequentially, the gross margin improved from the prior quarter, with revenue unchanged and cost of revenue slightly lower. Year-over-year, the gross margin strengthened from the same quarter last year, as revenue increased more than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
67.7%
Gross profit
$2.1B
Revenue
$3.1B
Cost of revenue
$995.0M
Quarter-over-quarter change
+0.8 pts
Year-over-year change
+2.3 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% |
| Sep 30, 2023 | $3.1B | $2.1B | $995.0M | 67.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.8 pts
Year-over-year change
Sep 30, 2022
+2.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was driven by the favorable relationship between cost of revenue and revenue. Cost of revenue decreased slightly from the prior quarter while revenue held steady, and year-over-year revenue growth outpaced cost growth.
Sequentially, the gross margin improved from the prior quarter, with revenue unchanged and cost of revenue slightly lower. Year-over-year, the gross margin strengthened from the same quarter last year, as revenue increased more than cost of revenue.
Monitor the trend of cost of revenue relative to revenue, as it directly influences gross margin direction.