Western Digital Corporation stock research
FY2023 Q4
Western Digital (WDC) Gross Margin — Quarter Ended Jun 30, 2023
Revenue was negative, resulting in a gross loss, while cost of revenue exceeded gross profit, yielding a negative gross margin. The current quarter's gross margin weakened compared to both the prior quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q4
Revenue was negative, resulting in a gross loss, while cost of revenue exceeded gross profit, yielding a negative gross margin. The current quarter's gross margin weakened compared to both the prior quarter and the same quarter last year.
- The margin decline is primarily observable through the relationship between revenue and cost of revenue, as cost of revenue exceeded revenue, producing a gross loss. The steep drop from a positive gross margin in the prior periods to a negative figure is the most notable structural change.
- Compared to the immediately preceding quarter, gross margin turned from positive to negative; revenue was lower, cost of revenue was higher, and gross profit shifted to a loss. Compared to the same quarter one year ago, revenue and gross profit were substantially lower, and gross margin weakened significantly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
11.9%
Gross profit
-$404.0M
Revenue
-$3.4B
Cost of revenue
-$3.0B
Quarter-over-quarter change
+1.7 pts
Year-over-year change
-20.0 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 | $2.8B | $286.0M | $2.5B | 10.2% |
| Jun 30, 2023 | -$3.4B | -$404.0M | -$3.0B | 11.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.7 pts
Year-over-year change
Jul 1, 2022
-20.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The margin decline is primarily observable through the relationship between revenue and cost of revenue, as cost of revenue exceeded revenue, producing a gross loss. The steep drop from a positive gross margin in the prior periods to a negative figure is the most notable structural change.
Compared to the immediately preceding quarter, gross margin turned from positive to negative; revenue was lower, cost of revenue was higher, and gross profit shifted to a loss. Compared to the same quarter one year ago, revenue and gross profit were substantially lower, and gross margin weakened significantly.
Monitor whether revenue and cost of revenue return to a balance where gross profit turns positive in future quarters.