Cardinal Health, Inc. stock research
FY2025 Q3
Cardinal Health (CAH) Gross Margin — Quarter Ended Mar 31, 2025
Revenue was stable compared to both the prior quarter and the same quarter last year, while cost of revenue decreased, leading to higher gross profit and an improved gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q3
Revenue was stable compared to both the prior quarter and the same quarter last year, while cost of revenue decreased, leading to higher gross profit and an improved gross margin.
- The decrease in cost of revenue alongside stable revenue was the most notable factor in the margin improvement, as gross profit rose from the prior periods.
- Gross margin improved from the prior quarter and from the same quarter one year ago. Revenue was slightly lower than the prior quarter but unchanged from the year-ago period, while gross profit was higher than both.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
3.9%
Gross profit
$2.1B
Revenue
$54.9B
Cost of revenue
$52.8B
Quarter-over-quarter change
+0.4 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2025 | $54.9B | $2.1B | $52.8B | 3.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+0.4 pts
Year-over-year change
Mar 31, 2024
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decrease in cost of revenue alongside stable revenue was the most notable factor in the margin improvement, as gross profit rose from the prior periods.
Gross margin improved from the prior quarter and from the same quarter one year ago. Revenue was slightly lower than the prior quarter but unchanged from the year-ago period, while gross profit was higher than both.
Monitor the trend in cost of revenue relative to revenue, as its movement directly influences gross margin direction.