CVS Health Corporation stock research
FY2025 Q1
CVS Health (CVS) Gross Margin — Quarter Ended Mar 31, 2025
Revenue was lower than the immediately preceding quarter but higher than the same quarter one year earlier. Gross profit and gross margin both improved versus the prior quarter, while gross profit was higher and gross margin was stable compared with the year-ago period.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue was lower than the immediately preceding quarter but higher than the same quarter one year earlier. Gross profit and gross margin both improved versus the prior quarter, while gross profit was higher and gross margin was stable compared with the year-ago period.
- The relationship between cost of revenue and gross profit is the clearest observable driver this quarter: gross profit increased despite a slight drop in revenue, as cost of revenue decreased more than revenue from the prior quarter.
- Compared with the immediately preceding quarter, revenue was lower but gross profit was higher, leading to an improved gross margin. Versus the same quarter one year earlier, revenue and gross profit were both higher, while gross margin remained essentially stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
46.0%
Gross profit
$43.5B
Revenue
$94.6B
Cost of revenue
$51.1B
Quarter-over-quarter change
+2.6 pts
Year-over-year change
+0.4 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2025 | $94.6B | $43.5B | $51.1B | 46.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+2.6 pts
Year-over-year change
Mar 31, 2024
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between cost of revenue and gross profit is the clearest observable driver this quarter: gross profit increased despite a slight drop in revenue, as cost of revenue decreased more than revenue from the prior quarter.
Compared with the immediately preceding quarter, revenue was lower but gross profit was higher, leading to an improved gross margin. Versus the same quarter one year earlier, revenue and gross profit were both higher, while gross margin remained essentially stable.
Monitor whether the relationship between revenue and cost of revenue continues to shift favorably, as gross profit improvement was supported by a larger reduction in cost of revenue relative to revenue.