Cardinal Health, Inc. stock research
FY2026 Q1
Cardinal Health (CAH) Gross Margin — Quarter Ended Sep 30, 2025
Cardinal Health, a global healthcare services company, reported higher revenue and gross profit compared to both the prior quarter and the same quarter last year, with cost of revenue also increasing. Gross margin was slightly lower than the prior quarter but unchanged from the year-ago period, reflecting that the increase in cost of revenue was similar in magnitude to the increase in revenue.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2026 Q1
Cardinal Health, a global healthcare services company, reported higher revenue and gross profit compared to both the prior quarter and the same quarter last year, with cost of revenue also increasing. Gross margin was slightly lower than the prior quarter but unchanged from the year-ago period, reflecting that the increase in cost of revenue was similar in magnitude to the increase in revenue.
- The most observable driver of the gross margin movement is the trend in cost of revenue relative to revenue. The cost of revenue grew at a rate that was slightly faster than revenue quarter-over-quarter, leading to the slight margin decline, while year-over-year the growth rates were aligned, keeping the margin stable.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, while gross margin was slightly lower. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin was unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
3.6%
Gross profit
$2.3B
Revenue
$64.0B
Cost of revenue
$61.7B
Quarter-over-quarter change
-0.0 pts
Year-over-year change
-0.0 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $64.0B | $2.3B | $61.7B | 3.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-0.0 pts
Year-over-year change
Sep 30, 2024
-0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of the gross margin movement is the trend in cost of revenue relative to revenue. The cost of revenue grew at a rate that was slightly faster than revenue quarter-over-quarter, leading to the slight margin decline, while year-over-year the growth rates were aligned, keeping the margin stable.
Compared to the immediately preceding quarter, revenue and gross profit were higher, while gross margin was slightly lower. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin was unchanged.
Monitor the ratio of cost of revenue to revenue, as changes in this relationship could indicate future margin pressure or improvement.