Danaher Corporation stock research
FY2024 Q4
Danaher (DHR) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose sequentially but was stable year-over-year. Gross margin improved in both comparisons, reflecting a favorable relationship between revenue growth and cost of revenue.
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, while cost of revenue rose sequentially but was stable year-over-year. Gross margin improved in both comparisons, reflecting a favorable relationship between revenue growth and cost of revenue.
- The strongest observable driver is the change in cost of revenue relative to revenue. Gross margin improved because cost of revenue increased at a slower pace than revenue sequentially and was unchanged year-over-year while revenue grew.
- Sequentially, revenue, gross profit, and cost of revenue all increased, with gross margin improving. Year-over-year, revenue and gross profit were higher while cost of revenue was stable, leading to a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.5%
Gross profit
$3.9B
Revenue
$6.5B
Cost of revenue
$2.6B
Quarter-over-quarter change
+0.8 pts
Year-over-year change
+0.5 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 29, 2024 | $5.8B | $3.5B | $2.3B | 60.2% |
| Jun 28, 2024 | $5.7B | $3.4B | $2.3B | 59.7% |
| Sep 27, 2024 | $5.8B | $3.4B | $2.4B | 58.7% |
| Dec 31, 2024 | $6.5B | $3.9B | $2.6B | 59.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 27, 2024
+0.8 pts
Year-over-year change
Dec 31, 2023
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the change in cost of revenue relative to revenue. Gross margin improved because cost of revenue increased at a slower pace than revenue sequentially and was unchanged year-over-year while revenue grew.
Sequentially, revenue, gross profit, and cost of revenue all increased, with gross margin improving. Year-over-year, revenue and gross profit were higher while cost of revenue was stable, leading to a higher gross margin.
Monitor the trend in cost of revenue relative to revenue, as it directly influences gross margin movements.