Danaher Corporation stock research
FY2025 Q1
Danaher (DHR) Gross Margin — Quarter Ended Mar 28, 2025
Revenue decreased compared to the prior quarter and was largely stable versus the same quarter a year earlier. Gross profit moved lower sequentially but held steady year over year, while cost of revenue declined both sequentially and relative to the prior year; the combined effect resulted in an improved gross margin compared to the prior quarter and a higher gross margin compared to the same quarter last year.
Gross margin takeaway
Quarter ended Mar 28, 2025 · FY2025 Q1
Revenue decreased compared to the prior quarter and was largely stable versus the same quarter a year earlier. Gross profit moved lower sequentially but held steady year over year, while cost of revenue declined both sequentially and relative to the prior year; the combined effect resulted in an improved gross margin compared to the prior quarter and a higher gross margin compared to the same quarter last year.
- Gross margin improved sequentially as cost of revenue declined more rapidly than revenue. The margin also rose year over year, supported by a lower cost base.
- Compared to the prior quarter, revenue was lower, gross profit was lower, and cost of revenue was lower, while gross margin improved. Versus the same quarter one year earlier, revenue was broadly unchanged, gross profit was similar, cost of revenue was lower, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
61.2%
Gross profit
$3.5B
Revenue
$5.7B
Cost of revenue
$2.2B
Quarter-over-quarter change
+1.7 pts
Year-over-year change
+1.0 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 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% |
| Mar 28, 2025 | $5.7B | $3.5B | $2.2B | 61.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+1.7 pts
Year-over-year change
Mar 29, 2024
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved sequentially as cost of revenue declined more rapidly than revenue. The margin also rose year over year, supported by a lower cost base.
Compared to the prior quarter, revenue was lower, gross profit was lower, and cost of revenue was lower, while gross margin improved. Versus the same quarter one year earlier, revenue was broadly unchanged, gross profit was similar, cost of revenue was lower, and gross margin was higher.
Monitor cost of revenue trends, as its decline was the key factor behind the sequential margin improvement.