Cencora, Inc. stock research
FY2025 Q1
Cencora (COR) Gross Margin — Quarter Ended Dec 31, 2024
Revenue increased compared with both the immediately preceding quarter and the same quarter one year earlier, and gross profit was also higher. However, cost of revenue grew at a faster pace, causing gross margin to weaken relative to both prior periods.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2025 Q1
Revenue increased compared with both the immediately preceding quarter and the same quarter one year earlier, and gross profit was also higher. However, cost of revenue grew at a faster pace, causing gross margin to weaken relative to both prior periods.
- The strongest observable margin driver is the change in cost of revenue, which grew more rapidly than revenue, exerting downward pressure on gross margin.
- Sequentially, gross margin weakened slightly from the immediately preceding quarter. Year-over-year, the decline was more pronounced compared with the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
3.1%
Gross profit
$2.6B
Revenue
$81.5B
Cost of revenue
$78.9B
Quarter-over-quarter change
-0.0 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 | $68.4B | $2.5B | $65.9B | 3.7% |
| Jun 30, 2024 | $74.2B | $2.4B | $71.8B | 3.2% |
| Sep 30, 2024 | $79.1B | $2.5B | $76.6B | 3.2% |
| Dec 31, 2024 | $81.5B | $2.6B | $78.9B | 3.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.0 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 strongest observable margin driver is the change in cost of revenue, which grew more rapidly than revenue, exerting downward pressure on gross margin.
Sequentially, gross margin weakened slightly from the immediately preceding quarter. Year-over-year, the decline was more pronounced compared with the same quarter one year earlier.
Monitor the trajectory of cost of revenue relative to revenue, as a continued faster increase could further compress gross margin.