Sysco Corporation stock research
FY2024 Q1
Sysco (SYY) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and gross profit both decreased slightly from the prior quarter, while cost of revenue remained stable, resulting in a marginally lower gross margin. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue increased, and gross margin improved.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2024 Q1
Revenue and gross profit both decreased slightly from the prior quarter, while cost of revenue remained stable, resulting in a marginally lower gross margin. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue increased, and gross margin improved.
- The gross margin improved compared to the same quarter last year, driven by a proportionally larger increase in gross profit relative to revenue. The strongest observable driver is the year-over-year expansion in gross margin.
- Compared to the prior quarter, gross margin weakened slightly as revenue and gross profit declined while cost of revenue was unchanged. Compared to the same quarter last year, gross margin improved, with revenue and gross profit both higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
18.6%
Gross profit
$3.6B
Revenue
$19.6B
Cost of revenue
$16.0B
Quarter-over-quarter change
+0.4 pts
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% |
| Sep 30, 2023 | $19.6B | $3.6B | $16.0B | 18.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 1, 2023
+0.4 pts
Year-over-year change
Oct 1, 2022
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved compared to the same quarter last year, driven by a proportionally larger increase in gross profit relative to revenue. The strongest observable driver is the year-over-year expansion in gross margin.
Compared to the prior quarter, gross margin weakened slightly as revenue and gross profit declined while cost of revenue was unchanged. Compared to the same quarter last year, gross margin improved, with revenue and gross profit both higher.
Monitor the trajectory of cost of revenue relative to revenue, as it remained stable quarter-over-quarter despite a decline in revenue.