Sysco Corporation stock research
FY2023 Q3
Sysco (SYY) Gross Margin — Quarter Ended Apr 1, 2023
Revenue, gross profit, and cost of revenue all increased from the prior quarter and from the same quarter a year ago, with gross margin improving in both comparisons. The company reported positive free cash flow during a period of higher capital expenditures related to its strategic growth initiatives.
Gross margin takeaway
Quarter ended Apr 1, 2023 · FY2023 Q3
Revenue, gross profit, and cost of revenue all increased from the prior quarter and from the same quarter a year ago, with gross margin improving in both comparisons. The company reported positive free cash flow during a period of higher capital expenditures related to its strategic growth initiatives.
- The strongest observable margin driver is the decline in the ratio of cost of revenue to revenue, which contributed to the gross margin improvement.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were higher, and gross margin improved. Relative to the same quarter one year earlier, all metrics were higher, with gross margin also showing improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
18.2%
Gross profit
$3.4B
Revenue
$18.9B
Cost of revenue
$15.4B
Quarter-over-quarter change
n/a
Year-over-year change
+0.4 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 |
|---|---|---|---|---|
| Apr 1, 2023 | $18.9B | $3.4B | $15.4B | 18.2% |
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 2, 2022
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the decline in the ratio of cost of revenue to revenue, which contributed to the gross margin improvement.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were higher, and gross margin improved. Relative to the same quarter one year earlier, all metrics were higher, with gross margin also showing improvement.
Monitor the trajectory of capital expenditures as the company continues its strategic growth investments.