Xylem Inc. stock research
FY2023 Q1
Xylem (XYL) Gross Margin — Quarter Ended Mar 31, 2023
Revenue, gross profit, and cost of revenue all decreased from the prior quarter, leading to a slightly lower gross margin. Compared to the same quarter last year, all metrics increased and gross margin improved.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue, gross profit, and cost of revenue all decreased from the prior quarter, leading to a slightly lower gross margin. Compared to the same quarter last year, all metrics increased and gross margin improved.
- The year-over-year improvement in gross margin was driven by revenue growing faster than cost of revenue, while the sequential decline reflected cost of revenue falling at a slower pace than revenue.
- Sequentially, revenue, gross profit, and cost of revenue were lower, and gross margin weakened slightly. Year-over-year, all figures were higher and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.7%
Gross profit
$546.0M
Revenue
$1.4B
Cost of revenue
$902.0M
Quarter-over-quarter change
n/a
Year-over-year change
+1.0 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 | $1.4B | $546.0M | $902.0M | 37.7% |
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
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year improvement in gross margin was driven by revenue growing faster than cost of revenue, while the sequential decline reflected cost of revenue falling at a slower pace than revenue.
Sequentially, revenue, gross profit, and cost of revenue were lower, and gross margin weakened slightly. Year-over-year, all figures were higher and gross margin improved.
Monitor the trajectory of cost of revenue relative to revenue, as the filing context highlights changes in inventory purchases and accounts receivable collections that may influence cost efficiency.