SY

Stryker Corporation stock research

Mar 31, 2023

FY2023 Q1

Stryker (SYK) Gross Margin — Quarter Ended Mar 31, 2023

Revenue and gross profit both decreased from the prior quarter but increased compared to the same quarter last year. Gross margin improved slightly from the prior quarter but weakened versus the year-ago period.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q1

Revenue and gross profit both decreased from the prior quarter but increased compared to the same quarter last year. Gross margin improved slightly from the prior quarter but weakened versus the year-ago period.

  • The gross margin improved relative to the prior quarter as the proportion of cost of revenue to revenue declined. The strongest observable driver in the current quarter was gross profit performance relative to revenue.
  • Compared to the prior quarter, revenue and gross profit were lower while gross margin was higher. Compared to the same quarter one year earlier, revenue and gross profit were higher, but gross margin was lower.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

63.1%

Gross profit

$3.0B

Revenue

$4.8B

Cost of revenue

$1.8B

Quarter-over-quarter change

n/a

Year-over-year change

-0.8 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$4.8B$3.0B$1.8B63.1%

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

-0.8 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin improved relative to the prior quarter as the proportion of cost of revenue to revenue declined. The strongest observable driver in the current quarter was gross profit performance relative to revenue.

Compared to the prior quarter, revenue and gross profit were lower while gross margin was higher. Compared to the same quarter one year earlier, revenue and gross profit were higher, but gross margin was lower.

Monitor the trend in the cost of revenue as a share of revenue in the next quarter.