Quest Diagnostics Incorporated stock research
FY2024 Q4
Quest Diagnostics (DGX) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved slightly, reflecting a higher share of revenue retained as gross profit.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved slightly, reflecting a higher share of revenue retained as gross profit.
- The strongest observable margin driver is the expansion of gross margin, driven by a larger increase in gross profit relative to revenue.
- Sequentially, revenue, cost of revenue, and gross profit were all higher, with gross margin improving from the prior quarter. Year-over-year, all metrics were higher, and gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.7%
Gross profit
$858.0M
Revenue
$2.6B
Cost of revenue
$1.8B
Quarter-over-quarter change
+0.1 pts
Year-over-year change
+0.6 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 | $2.4B | $771.0M | $1.6B | 32.6% |
| Jun 30, 2024 | $2.4B | $804.0M | $1.6B | 33.5% |
| Sep 30, 2024 | $2.5B | $811.0M | $1.7B | 32.6% |
| Dec 31, 2024 | $2.6B | $858.0M | $1.8B | 32.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+0.1 pts
Year-over-year change
Dec 31, 2023
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the expansion of gross margin, driven by a larger increase in gross profit relative to revenue.
Sequentially, revenue, cost of revenue, and gross profit were all higher, with gross margin improving from the prior quarter. Year-over-year, all metrics were higher, and gross margin also improved.
Monitor the trend in cost of revenue as a percentage of revenue, as its growth rate influences gross margin.