CVS Health Corporation stock research
FY2025 Q3
CVS Health (CVS) Gross Margin — Quarter Ended Sep 30, 2025
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit also rose. Gross margin was unchanged from a year ago but slightly lower than the preceding quarter, reflecting a higher cost of revenue growth rate relative to revenue.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit also rose. Gross margin was unchanged from a year ago but slightly lower than the preceding quarter, reflecting a higher cost of revenue growth rate relative to revenue.
- The strongest observable margin driver this quarter is the relationship between revenue and cost of revenue. Revenue grew from the prior quarter, but cost of revenue grew at a faster pace, causing gross margin to narrow.
- Compared to the immediately preceding quarter, gross margin weakened. Versus the same quarter one year earlier, gross margin was stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.5%
Gross profit
$45.8B
Revenue
$102.9B
Cost of revenue
$57.0B
Quarter-over-quarter change
-0.9 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 | $97.7B | $42.4B | $55.3B | 43.4% |
| Mar 31, 2025 | $94.6B | $43.5B | $51.1B | 46.0% |
| Jun 30, 2025 | $98.9B | $44.9B | $54.0B | 45.4% |
| Sep 30, 2025 | $102.9B | $45.8B | $57.0B | 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, 2025
-0.9 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 strongest observable margin driver this quarter is the relationship between revenue and cost of revenue. Revenue grew from the prior quarter, but cost of revenue grew at a faster pace, causing gross margin to narrow.
Compared to the immediately preceding quarter, gross margin weakened. Versus the same quarter one year earlier, gross margin was stable.
Monitor the trend of cost of revenue growth relative to revenue growth in upcoming quarters.