Quest Diagnostics Incorporated stock research
FY2025 Q1
Quest Diagnostics (DGX) Gross Margin — Quarter Ended Mar 31, 2025
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit also increased, but cost of revenue rose as well, leading to a slightly weakened gross margin relative to both periods.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit also increased, but cost of revenue rose as well, leading to a slightly weakened gross margin relative to both periods.
- The strongest observable driver is the relationship between cost of revenue and revenue. Cost of revenue grew at a pace that slightly outpaced revenue growth, resulting in a marginal gross margin decline.
- Compared to the immediately preceding quarter, revenue was higher and gross profit was higher, but cost of revenue was essentially stable, leading to a slightly lower gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, with gross margin slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.5%
Gross profit
$863.0M
Revenue
$2.7B
Cost of revenue
$1.8B
Quarter-over-quarter change
-0.2 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2025 | $2.7B | $863.0M | $1.8B | 32.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-0.2 pts
Year-over-year change
Mar 31, 2024
-0.0 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 cost of revenue and revenue. Cost of revenue grew at a pace that slightly outpaced revenue growth, resulting in a marginal gross margin decline.
Compared to the immediately preceding quarter, revenue was higher and gross profit was higher, but cost of revenue was essentially stable, leading to a slightly lower gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, with gross margin slightly lower.
Monitor trends in cost of revenue relative to revenue, as the gross margin weakened slightly. Additionally, the filing notes a significant increase in net cash provided by operating activities compared to the prior year, which may be relevant.