Texas Instruments Incorporated stock research
FY2023 Q3
Texas Instruments (TXN) Gross Margin — Quarter Ended Sep 30, 2023
Revenue remained stable compared to the prior quarter, but gross profit decreased and cost of revenue increased, resulting in a lower gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin all decreased, while cost of revenue stayed relatively unchanged.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue remained stable compared to the prior quarter, but gross profit decreased and cost of revenue increased, resulting in a lower gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin all decreased, while cost of revenue stayed relatively unchanged.
- The gross margin weakened sequentially, as the increase in cost of revenue outpaced the flat revenue, reducing gross profit. On a year-over-year basis, the decline in gross profit and margin was driven by lower revenue while cost of revenue remained at a similar level.
- Compared to the immediately preceding quarter, gross margin was lower, driven by a slight increase in cost of revenue and a decrease in gross profit. Versus the same quarter a year ago, revenue, gross profit, and gross margin were all lower, while cost of revenue was similar.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
62.1%
Gross profit
$2.8B
Revenue
$4.5B
Cost of revenue
$1.7B
Quarter-over-quarter change
-2.1 pts
Year-over-year change
-6.9 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% |
| Jun 30, 2023 | $4.5B | $2.9B | $1.6B | 64.2% |
| Sep 30, 2023 | $4.5B | $2.8B | $1.7B | 62.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-2.1 pts
Year-over-year change
Sep 30, 2022
-6.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened sequentially, as the increase in cost of revenue outpaced the flat revenue, reducing gross profit. On a year-over-year basis, the decline in gross profit and margin was driven by lower revenue while cost of revenue remained at a similar level.
Compared to the immediately preceding quarter, gross margin was lower, driven by a slight increase in cost of revenue and a decrease in gross profit. Versus the same quarter a year ago, revenue, gross profit, and gross margin were all lower, while cost of revenue was similar.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters, as costs increased sequentially while revenue was flat.