Seagate Technology Holdings plc stock research
FY2023 Q3
Seagate Technology Holdings (STX) Gross Margin — Quarter Ended Mar 31, 2023
Revenue was unchanged from the prior quarter, but a lower cost of revenue lifted gross profit and gross margin. Compared with the same quarter one year earlier, revenue, gross profit, and gross margin were all lower, while cost of revenue also declined.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q3
Revenue was unchanged from the prior quarter, but a lower cost of revenue lifted gross profit and gross margin. Compared with the same quarter one year earlier, revenue, gross profit, and gross margin were all lower, while cost of revenue also declined.
- Gross profit increased because cost of revenue decreased while revenue remained stable, resulting in a higher gross margin.
- Sequentially, gross margin improved as cost of revenue fell relative to flat revenue. Year-over-year, gross margin weakened because revenue declined more than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
17.2%
Gross profit
$319.0M
Revenue
$1.9B
Cost of revenue
$1.5B
Quarter-over-quarter change
n/a
Year-over-year change
-11.6 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 | $1.9B | $319.0M | $1.5B | 17.2% |
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
Apr 1, 2022
-11.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit increased because cost of revenue decreased while revenue remained stable, resulting in a higher gross margin.
Sequentially, gross margin improved as cost of revenue fell relative to flat revenue. Year-over-year, gross margin weakened because revenue declined more than cost of revenue.
Monitor whether the reduction in cost of revenue can be sustained or if it was a temporary adjustment.