Zebra Technologies Corporation stock research
FY2023 Q2
Zebra Technologies (ZBRA) Gross Margin — Quarter Ended Jul 1, 2023
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin improved slightly from the prior quarter and more notably from the year-ago quarter, indicating that the reduction in cost of revenue outpaced the decline in revenue.
Gross margin takeaway
Quarter ended Jul 1, 2023 · FY2023 Q2
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin improved slightly from the prior quarter and more notably from the year-ago quarter, indicating that the reduction in cost of revenue outpaced the decline in revenue.
- The strongest observable margin driver is the relative change in cost of revenue, which decreased more sharply than revenue, leading to an improved gross margin. This relationship is consistent across both sequential and year-over-year comparisons.
- Compared to the immediately preceding quarter, gross margin was higher despite lower revenue and gross profit. Compared to the same quarter one year earlier, gross margin was also higher, with revenue and gross profit lower but cost of revenue declining more substantially.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.9%
Gross profit
$581.0M
Revenue
$1.2B
Cost of revenue
$633.0M
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+1.9 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 |
|---|---|---|---|---|
| Apr 1, 2023 | $1.4B | $667.0M | $738.0M | 47.5% |
| Jul 1, 2023 | $1.2B | $581.0M | $633.0M | 47.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 1, 2023
+0.4 pts
Year-over-year change
Jul 2, 2022
+1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relative change in cost of revenue, which decreased more sharply than revenue, leading to an improved gross margin. This relationship is consistent across both sequential and year-over-year comparisons.
Compared to the immediately preceding quarter, gross margin was higher despite lower revenue and gross profit. Compared to the same quarter one year earlier, gross margin was also higher, with revenue and gross profit lower but cost of revenue declining more substantially.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess whether the margin improvement can be sustained.