Xylem Inc. stock research
FY2023 Q3
Xylem (XYL) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin was lower, reflecting a higher proportion of cost of revenue relative to revenue.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin was lower, reflecting a higher proportion of cost of revenue relative to revenue.
- The gross margin weakened sequentially and year-over-year, with cost of revenue growing at a faster pace than revenue on a relative basis.
- Compared to the immediately preceding quarter, gross margin weakened. Compared to the same quarter one year earlier, gross margin also weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.8%
Gross profit
$764.0M
Revenue
$2.1B
Cost of revenue
$1.3B
Quarter-over-quarter change
-1.0 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 | $1.4B | $546.0M | $902.0M | 37.7% |
| Jun 30, 2023 | $1.7B | $651.0M | $1.1B | 37.8% |
| Sep 30, 2023 | $2.1B | $764.0M | $1.3B | 36.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-1.0 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 gross margin weakened sequentially and year-over-year, with cost of revenue growing at a faster pace than revenue on a relative basis.
Compared to the immediately preceding quarter, gross margin weakened. Compared to the same quarter one year earlier, gross margin also weakened.
Monitor inventory levels and shipment timing, as the filing noted a reduction in safety stock and timing of shipments affecting cash flows, which may influence cost of revenue.