Cardinal Health, Inc. stock research
FY2025 Q2
Cardinal Health (CAH) Gross Margin — Quarter Ended Dec 31, 2024
Revenue increased from the prior quarter but decreased compared to the same quarter last year. Gross profit remained unchanged across all periods, resulting in gross margin improvement year-over-year but a slight weakening sequentially.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2025 Q2
Revenue increased from the prior quarter but decreased compared to the same quarter last year. Gross profit remained unchanged across all periods, resulting in gross margin improvement year-over-year but a slight weakening sequentially.
- The stable gross profit despite varying revenue is the key margin driver. This indicates that cost of revenue adjusted in line with revenue changes, maintaining absolute profit.
- Compared to the previous quarter, gross margin was slightly lower due to higher revenue with the same gross profit. Versus the same quarter last year, gross margin improved as revenue declined while gross profit held steady.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
3.5%
Gross profit
$1.9B
Revenue
$55.3B
Cost of revenue
$53.3B
Quarter-over-quarter change
-0.1 pts
Year-over-year change
+0.3 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 |
|---|---|---|---|---|
| Mar 31, 2024 | $54.9B | $1.9B | $52.9B | 3.5% |
| Jun 30, 2024 | $59.9B | $1.9B | $58.0B | 3.1% |
| Sep 30, 2024 | $52.3B | $1.9B | $50.4B | 3.6% |
| Dec 31, 2024 | $55.3B | $1.9B | $53.3B | 3.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.1 pts
Year-over-year change
Dec 31, 2023
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The stable gross profit despite varying revenue is the key margin driver. This indicates that cost of revenue adjusted in line with revenue changes, maintaining absolute profit.
Compared to the previous quarter, gross margin was slightly lower due to higher revenue with the same gross profit. Versus the same quarter last year, gross margin improved as revenue declined while gross profit held steady.
Monitor the stability of gross profit in future quarters, as any deviation could significantly impact gross margin.