Seagate Technology Holdings plc stock research
FY2023 Q4
Seagate Technology Holdings (STX) Gross Margin — Quarter Ended Jun 30, 2023
Revenue decreased, cost of revenue decreased, and gross profit decreased. Gross margin was higher than the prior quarter but lower than the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q4
Revenue decreased, cost of revenue decreased, and gross profit decreased. Gross margin was higher than the prior quarter but lower than the same quarter one year earlier.
- The most observable driver is the relationship between cost of revenue and revenue: cost of revenue declined proportionally more than revenue compared to the prior quarter, leading to an improved gross margin. A concrete item to monitor is the company's cost of revenue relative to revenue in future periods.
- Compared to the immediately preceding quarter, revenue was lower but gross margin improved. Compared to the same quarter one year earlier, revenue and gross margin were both lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
19.0%
Gross profit
$304.0M
Revenue
$1.6B
Cost of revenue
$1.3B
Quarter-over-quarter change
+1.8 pts
Year-over-year change
-9.9 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% |
| Jun 30, 2023 | $1.6B | $304.0M | $1.3B | 19.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.8 pts
Year-over-year change
Jul 1, 2022
-9.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver is the relationship between cost of revenue and revenue: cost of revenue declined proportionally more than revenue compared to the prior quarter, leading to an improved gross margin. A concrete item to monitor is the company's cost of revenue relative to revenue in future periods.
Compared to the immediately preceding quarter, revenue was lower but gross margin improved. Compared to the same quarter one year earlier, revenue and gross margin were both lower.
Monitor the performance of the mass capacity storage market as described in the business overview, given its prominence in the company's product portfolio.