Texas Instruments Incorporated stock research
FY2023 Q1
Texas Instruments (TXN) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit were lower than both the preceding quarter and the year-ago quarter. Cost of revenue also decreased, but the gross margin weakened, indicating that the reduction in cost of revenue did not fully offset the revenue decline.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit were lower than both the preceding quarter and the year-ago quarter. Cost of revenue also decreased, but the gross margin weakened, indicating that the reduction in cost of revenue did not fully offset the revenue decline.
- Compared with the prior quarter, gross margin declined; compared with the same quarter last year, the decline was more pronounced. The relationship between revenue and cost of revenue shows that cost of revenue did not decrease as much as revenue.
- Quarter-over-quarter, revenue, gross profit, and cost of revenue all decreased, with gross margin slightly lower. Year-over-year, revenue and gross profit decreased more sharply, while cost of revenue remained stable, leading to a larger gross margin decline.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
65.4%
Gross profit
$2.9B
Revenue
$4.4B
Cost of revenue
$1.5B
Quarter-over-quarter change
n/a
Year-over-year change
-4.8 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 | $4.4B | $2.9B | $1.5B | 65.4% |
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
-4.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Compared with the prior quarter, gross margin declined; compared with the same quarter last year, the decline was more pronounced. The relationship between revenue and cost of revenue shows that cost of revenue did not decrease as much as revenue.
Quarter-over-quarter, revenue, gross profit, and cost of revenue all decreased, with gross margin slightly lower. Year-over-year, revenue and gross profit decreased more sharply, while cost of revenue remained stable, leading to a larger gross margin decline.
Monitor the company's inventory build, as noted in the liquidity discussion, which could affect future cost of revenue.