AbbVie Inc. stock research
FY2025 Q3
AbbVie (ABBV) Gross Margin — Quarter Ended Sep 30, 2025
Revenue increased relative to both the prior quarter and the same quarter last year, while gross profit was higher than a year ago but lower than the immediately preceding quarter. Cost of revenue rose more sharply than revenue on a sequential basis, leading to a weakened gross margin compared with both the prior quarter and the year-ago period.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue increased relative to both the prior quarter and the same quarter last year, while gross profit was higher than a year ago but lower than the immediately preceding quarter. Cost of revenue rose more sharply than revenue on a sequential basis, leading to a weakened gross margin compared with both the prior quarter and the year-ago period.
- The sequential decrease in gross profit despite higher revenue indicates that cost of revenue grew at a faster rate than revenue, compressing margin. Compared with the same quarter last year, revenue growth outpaced cost of revenue growth, supporting a higher absolute gross profit.
- Quarter over quarter, gross margin weakened as cost of revenue increased substantially more than revenue. Year over year, gross margin also weakened, though revenue and gross profit both improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
66.4%
Gross profit
$10.5B
Revenue
$15.8B
Cost of revenue
$5.3B
Quarter-over-quarter change
-5.4 pts
Year-over-year change
-4.5 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 |
|---|---|---|---|---|
| Sep 30, 2024 | $14.5B | $10.2B | $4.2B | 70.9% |
| Mar 31, 2025 | $13.3B | $9.3B | $4.0B | 70.0% |
| Jun 30, 2025 | $15.4B | $11.1B | $4.3B | 71.8% |
| Sep 30, 2025 | $15.8B | $10.5B | $5.3B | 66.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-5.4 pts
Year-over-year change
Sep 30, 2024
-4.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential decrease in gross profit despite higher revenue indicates that cost of revenue grew at a faster rate than revenue, compressing margin. Compared with the same quarter last year, revenue growth outpaced cost of revenue growth, supporting a higher absolute gross profit.
Quarter over quarter, gross margin weakened as cost of revenue increased substantially more than revenue. Year over year, gross margin also weakened, though revenue and gross profit both improved.
Monitor the trajectory of cost of revenue relative to revenue in subsequent quarters, given its outsized sequential increase this period.