CVS Health Corporation stock research
FY2024 Q4
CVS Health (CVS) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and cost of revenue both increased relative to the prior quarter, while gross profit was slightly lower, resulting in a weakened gross margin. Compared to the same quarter one year earlier, revenue and gross profit were higher and cost of revenue was lower, leading to a substantially improved gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and cost of revenue both increased relative to the prior quarter, while gross profit was slightly lower, resulting in a weakened gross margin. Compared to the same quarter one year earlier, revenue and gross profit were higher and cost of revenue was lower, leading to a substantially improved gross margin.
- The gross margin improved sharply versus the year-ago quarter, driven by a lower cost of revenue relative to revenue. The sequential weakening from the prior quarter reflects a slightly lower gross profit despite higher revenue.
- Compared to the prior quarter, revenue was higher while gross profit was stable to slightly lower, causing gross margin to weaken. Versus the same quarter last year, revenue and gross profit were both higher, while cost of revenue was lower, resulting in a stronger gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.4%
Gross profit
$42.4B
Revenue
$97.7B
Cost of revenue
$55.3B
Quarter-over-quarter change
-1.1 pts
Year-over-year change
+4.6 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 | $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% |
| Dec 31, 2024 | $97.7B | $42.4B | $55.3B | 43.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-1.1 pts
Year-over-year change
Dec 31, 2023
+4.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sharply versus the year-ago quarter, driven by a lower cost of revenue relative to revenue. The sequential weakening from the prior quarter reflects a slightly lower gross profit despite higher revenue.
Compared to the prior quarter, revenue was higher while gross profit was stable to slightly lower, causing gross margin to weaken. Versus the same quarter last year, revenue and gross profit were both higher, while cost of revenue was lower, resulting in a stronger gross margin.
Monitor the relationship between revenue growth and the corresponding change in cost of revenue, as a divergence can quickly impact gross margin.