Baxter International Inc. stock research
FY2025 Q2
Baxter International (BAX) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue remained stable, leading to an improved gross margin. Versus the same quarter last year, revenue was higher but gross profit was lower, and cost of revenue was higher, resulting in a weakened gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue remained stable, leading to an improved gross margin. Versus the same quarter last year, revenue was higher but gross profit was lower, and cost of revenue was higher, resulting in a weakened gross margin.
- The strongest observable margin driver is the change in gross profit relative to revenue. In the current quarter, gross profit grew faster than revenue compared to the prior quarter, which supported margin improvement.
- Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.3%
Gross profit
$991.0M
Revenue
$2.8B
Cost of revenue
$1.8B
Quarter-over-quarter change
+2.5 pts
Year-over-year change
-3.0 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 |
|---|---|---|---|---|
| Jun 30, 2024 | $2.7B | $1.0B | $1.7B | 38.3% |
| Sep 30, 2024 | $2.7B | $1.0B | $1.7B | 38.3% |
| Mar 31, 2025 | $2.6B | $861.0M | $1.8B | 32.8% |
| Jun 30, 2025 | $2.8B | $991.0M | $1.8B | 35.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+2.5 pts
Year-over-year change
Jun 30, 2024
-3.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in gross profit relative to revenue. In the current quarter, gross profit grew faster than revenue compared to the prior quarter, which supported margin improvement.
Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Monitor the trend in cost of revenue, as it was higher versus the year-ago quarter while revenue increased only modestly.