CVS Health Corporation stock research
FY2025 Q4
CVS Health (CVS) Gross Margin — Quarter Ended Dec 31, 2025
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 relative to the same quarter a year ago, as cost of revenue grew at a different pace than revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
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 relative to the same quarter a year ago, as cost of revenue grew at a different pace than revenue.
- The strongest observable driver is the relationship between revenue growth and cost of revenue growth. Revenue increased while cost of revenue also increased, but the proportion of cost relative to revenue shifted, leading to a slightly lower gross margin sequentially.
- Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.1%
Gross profit
$46.6B
Revenue
$105.7B
Cost of revenue
$59.1B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
+0.7 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, 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% |
| Dec 31, 2025 | $105.7B | $46.6B | $59.1B | 44.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-0.4 pts
Year-over-year change
Dec 31, 2024
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the relationship between revenue growth and cost of revenue growth. Revenue increased while cost of revenue also increased, but the proportion of cost relative to revenue shifted, leading to a slightly lower gross margin sequentially.
Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was higher.
Monitor the trend in cost of revenue relative to revenue, as its growth rate influenced the gross margin movement this quarter.