CVS Health Corporation stock research
FY2024 Q3
CVS Health (CVS) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter last year, as cost of revenue grew at a slower pace than revenue on a year-over-year basis.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter last year, as cost of revenue grew at a slower pace than revenue on a year-over-year basis.
- The year-over-year improvement in gross margin was the most notable change, driven by a larger increase in gross profit relative to revenue growth.
- Compared to the prior quarter, gross margin was slightly lower despite higher revenue and gross profit. Compared to the same quarter last year, gross margin was higher, with gross profit increasing more than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.5%
Gross profit
$42.5B
Revenue
$95.4B
Cost of revenue
$52.9B
Quarter-over-quarter change
-0.7 pts
Year-over-year change
+5.4 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, 2023 | $93.8B | $36.4B | $57.4B | 38.8% |
| Mar 31, 2024 | $88.4B | $40.4B | $48.1B | 45.6% |
| Jun 30, 2024 | $91.2B | $41.2B | $50.0B | 45.2% |
| Sep 30, 2024 | $95.4B | $42.5B | $52.9B | 44.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-0.7 pts
Year-over-year change
Sep 30, 2023
+5.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year improvement in gross margin was the most notable change, driven by a larger increase in gross profit relative to revenue growth.
Compared to the prior quarter, gross margin was slightly lower despite higher revenue and gross profit. Compared to the same quarter last year, gross margin was higher, with gross profit increasing more than revenue.
Monitor the trajectory of cost of revenue relative to revenue, as its growth rate influences gross margin stability.