Danaher Corporation stock research
FY2025 Q2
Danaher (DHR) Gross Margin — Quarter Ended Jun 27, 2025
Revenue increased while cost of revenue also rose, resulting in gross profit remaining flat and gross margin declining. The relationship shows that the increase in cost of revenue outpaced the revenue growth, compressing margin.
Gross margin takeaway
Quarter ended Jun 27, 2025 · FY2025 Q2
Revenue increased while cost of revenue also rose, resulting in gross profit remaining flat and gross margin declining. The relationship shows that the increase in cost of revenue outpaced the revenue growth, compressing margin.
- The strongest observable margin driver is the sequential increase in cost of revenue, which rose while gross profit stayed unchanged, directly weakening gross margin. This contrasts with the prior quarter where cost of revenue was lower relative to revenue.
- Compared to the immediately preceding quarter, revenue was higher but gross profit was unchanged, cost of revenue was higher, and gross margin was lower. Versus the same quarter one year earlier, revenue and gross profit were both higher, cost of revenue was higher, and gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.3%
Gross profit
$3.5B
Revenue
$5.9B
Cost of revenue
$2.4B
Quarter-over-quarter change
-1.8 pts
Year-over-year change
-0.3 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 |
|---|---|---|---|---|
| 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% |
| Jun 27, 2025 | $5.9B | $3.5B | $2.4B | 59.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 28, 2025
-1.8 pts
Year-over-year change
Jun 28, 2024
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sequential increase in cost of revenue, which rose while gross profit stayed unchanged, directly weakening gross margin. This contrasts with the prior quarter where cost of revenue was lower relative to revenue.
Compared to the immediately preceding quarter, revenue was higher but gross profit was unchanged, cost of revenue was higher, and gross margin was lower. Versus the same quarter one year earlier, revenue and gross profit were both higher, cost of revenue was higher, and gross margin was slightly lower.
Monitor the trend of cost of revenue relative to revenue, as its growth rate has exceeded revenue growth and directly pressured gross margin.