Bristol-Myers Squibb Company stock research
FY2025 Q1
Bristol-Myers Squibb (BMY) Gross Margin — Quarter Ended Mar 31, 2025
Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit improved sequentially but declined year-over-year. Cost of revenue fell sharply from the prior quarter, leading to a significant sequential improvement in gross margin, though the margin weakened compared to the same quarter last year.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit improved sequentially but declined year-over-year. Cost of revenue fell sharply from the prior quarter, leading to a significant sequential improvement in gross margin, though the margin weakened compared to the same quarter last year.
- The sequential improvement in gross margin was primarily driven by a lower cost of revenue relative to revenue, as cost of revenue declined more than revenue. This relationship was the strongest observable factor in the current quarter's margin performance.
- Compared to the prior quarter, gross margin improved as cost of revenue decreased substantially while revenue declined moderately. Versus the same quarter last year, gross margin weakened as revenue fell and cost of revenue increased slightly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
72.9%
Gross profit
$8.2B
Revenue
$11.2B
Cost of revenue
$3.0B
Quarter-over-quarter change
+11.9 pts
Year-over-year change
-2.4 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 | $12.2B | $8.9B | $3.3B | 73.2% |
| Sep 30, 2024 | $11.9B | $8.9B | $3.0B | 75.1% |
| Dec 31, 2024 | $12.3B | $7.5B | $4.8B | 61.0% |
| Mar 31, 2025 | $11.2B | $8.2B | $3.0B | 72.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+11.9 pts
Year-over-year change
Mar 31, 2024
-2.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was primarily driven by a lower cost of revenue relative to revenue, as cost of revenue declined more than revenue. This relationship was the strongest observable factor in the current quarter's margin performance.
Compared to the prior quarter, gross margin improved as cost of revenue decreased substantially while revenue declined moderately. Versus the same quarter last year, gross margin weakened as revenue fell and cost of revenue increased slightly.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters, as its movement has been a key factor in gross margin changes.