Cardinal Health, Inc. stock research
FY2025 Q4
Cardinal Health (CAH) Gross Margin — Quarter Ended Jun 30, 2025
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit also rose, but cost of revenue grew at a faster rate than revenue sequentially, leading to a slightly lower gross margin; however, compared to a year ago, gross profit grew more than revenue, resulting in an improved margin.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q4
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit also rose, but cost of revenue grew at a faster rate than revenue sequentially, leading to a slightly lower gross margin; however, compared to a year ago, gross profit grew more than revenue, resulting in an improved margin.
- The strongest observable driver is the year-over-year expansion of gross profit relative to revenue, which lifted the gross margin. This was seen as gross profit growth exceeded revenue growth compared to the same quarter last year.
- Compared to the immediately preceding quarter, gross margin weakened as cost of revenue grew more than revenue. Compared to the same quarter one year earlier, gross margin improved as gross profit grew faster than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
3.7%
Gross profit
$2.2B
Revenue
$60.2B
Cost of revenue
$58.0B
Quarter-over-quarter change
-0.2 pts
Year-over-year change
+0.5 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2025 | $60.2B | $2.2B | $58.0B | 3.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-0.2 pts
Year-over-year change
Jun 30, 2024
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the year-over-year expansion of gross profit relative to revenue, which lifted the gross margin. This was seen as gross profit growth exceeded revenue growth compared to the same quarter last year.
Compared to the immediately preceding quarter, gross margin weakened as cost of revenue grew more than revenue. Compared to the same quarter one year earlier, gross margin improved as gross profit grew faster than revenue.
Monitor the impact of contract transitions and vendor payment timing on cost of revenue, as referenced in the filing's liquidity discussion.