CVS Health Corporation stock research
FY2026 Q1
CVS Health (CVS) Gross Margin — Quarter Ended Mar 31, 2026
Revenue and gross profit declined from the prior quarter but rose compared to the same quarter last year. Gross margin improved sequentially but weakened year over year.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue and gross profit declined from the prior quarter but rose compared to the same quarter last year. Gross margin improved sequentially but weakened year over year.
- The sequential gross margin improvement occurred as cost of revenue decreased at a faster rate than revenue. The year-over-year decline reflects cost of revenue increasing more rapidly than revenue.
- Compared to the previous quarter, revenue, gross profit, and cost of revenue were lower, while gross margin was higher. Compared to the same quarter last year, all three metrics were higher except gross margin, which was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.8%
Gross profit
$45.0B
Revenue
$100.4B
Cost of revenue
$55.4B
Quarter-over-quarter change
+0.7 pts
Year-over-year change
-1.2 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, 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% |
| Mar 31, 2026 | $100.4B | $45.0B | $55.4B | 44.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+0.7 pts
Year-over-year change
Mar 31, 2025
-1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential gross margin improvement occurred as cost of revenue decreased at a faster rate than revenue. The year-over-year decline reflects cost of revenue increasing more rapidly than revenue.
Compared to the previous quarter, revenue, gross profit, and cost of revenue were lower, while gross margin was higher. Compared to the same quarter last year, all three metrics were higher except gross margin, which was lower.
Monitor the trajectory of cost of revenue relative to revenue to see if the sequential margin improvement can be sustained.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| CVS Health Corporation (CVS) | 44.8% |