Trane Technologies plc stock research
FY2023 Q3
Trane Technologies (TT) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and cost of revenue both increased, but gross profit rose at a faster pace, resulting in a higher gross margin. Compared to both the prior quarter and the same quarter last year, gross margin improved.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue and cost of revenue both increased, but gross profit rose at a faster pace, resulting in a higher gross margin. Compared to both the prior quarter and the same quarter last year, gross margin improved.
- The strongest observable driver is the improvement in gross margin, which stems from gross profit growing more rapidly than cost of revenue relative to the revenue base.
- Gross margin was higher than the preceding quarter and showed a more pronounced improvement compared to the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.0%
Gross profit
$1.7B
Revenue
$4.9B
Cost of revenue
$3.2B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+1.2 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 | $3.7B | $1.1B | $2.5B | 31.2% |
| Jun 30, 2023 | $4.7B | $1.6B | $3.1B | 33.7% |
| Sep 30, 2023 | $4.9B | $1.7B | $3.2B | 34.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.3 pts
Year-over-year change
Sep 30, 2022
+1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the improvement in gross margin, which stems from gross profit growing more rapidly than cost of revenue relative to the revenue base.
Gross margin was higher than the preceding quarter and showed a more pronounced improvement compared to the same quarter one year earlier.
Monitor the ongoing trend of gross margin relative to revenue growth to assess the sustainability of margin improvement.