Amgen Inc. stock research
FY2025 Q1
Amgen (AMGN) Gross Margin — Quarter Ended Mar 31, 2025
In the current quarter, gross margin was higher than the same quarter last year but lower than the prior quarter. This reflects an increase in both revenue and gross profit year-over-year alongside a decrease in cost of revenue, while sequentially revenue and gross profit declined with a smaller reduction in cost of revenue.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
In the current quarter, gross margin was higher than the same quarter last year but lower than the prior quarter. This reflects an increase in both revenue and gross profit year-over-year alongside a decrease in cost of revenue, while sequentially revenue and gross profit declined with a smaller reduction in cost of revenue.
- The strongest observable margin driver is the relationship between revenue and cost of revenue. Year-over-year, revenue grew while cost of revenue declined, supporting margin expansion; sequentially, revenue declined more than cost of revenue, leading to margin compression.
- Compared to the prior quarter, revenue and gross profit were lower, cost of revenue was slightly lower, and gross margin weakened. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
63.6%
Gross profit
$5.2B
Revenue
$8.1B
Cost of revenue
$3.0B
Quarter-over-quarter change
-2.2 pts
Year-over-year change
+6.5 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 |
|---|---|---|---|---|
| Jun 30, 2024 | $8.4B | $5.2B | $3.2B | 61.4% |
| Sep 30, 2024 | $8.5B | $5.2B | $3.3B | 61.1% |
| Dec 31, 2024 | $9.1B | $6.0B | $3.1B | 65.7% |
| Mar 31, 2025 | $8.1B | $5.2B | $3.0B | 63.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-2.2 pts
Year-over-year change
Mar 31, 2024
+6.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue. Year-over-year, revenue grew while cost of revenue declined, supporting margin expansion; sequentially, revenue declined more than cost of revenue, leading to margin compression.
Compared to the prior quarter, revenue and gross profit were lower, cost of revenue was slightly lower, and gross margin weakened. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.
Monitor the trajectory of gross margin as the relative changes in revenue and cost of revenue evolve in upcoming quarters.