Danaher Corporation stock research
FY2025 Q3
Danaher (DHR) Gross Margin — Quarter Ended Sep 26, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but was stable compared to the year-ago period.
Gross margin takeaway
Quarter ended Sep 26, 2025 · FY2025 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but was stable compared to the year-ago period.
- The relationship between revenue and cost of revenue shows that revenue grew faster than cost of revenue compared to the year-ago quarter, supporting gross profit expansion. However, compared to the prior quarter, cost of revenue increased at a slightly higher rate relative to revenue, leading to a marginal gross margin decline.
- Compared to the prior quarter, gross margin was lower despite higher revenue, indicating a relative increase in cost of revenue. Versus the same quarter last year, gross margin was essentially stable, with revenue and gross profit both higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
58.2%
Gross profit
$3.5B
Revenue
$6.1B
Cost of revenue
$2.5B
Quarter-over-quarter change
-1.1 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 |
|---|---|---|---|---|
| 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% |
| Sep 26, 2025 | $6.1B | $3.5B | $2.5B | 58.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 27, 2025
-1.1 pts
Year-over-year change
Sep 27, 2024
-0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue shows that revenue grew faster than cost of revenue compared to the year-ago quarter, supporting gross profit expansion. However, compared to the prior quarter, cost of revenue increased at a slightly higher rate relative to revenue, leading to a marginal gross margin decline.
Compared to the prior quarter, gross margin was lower despite higher revenue, indicating a relative increase in cost of revenue. Versus the same quarter last year, gross margin was essentially stable, with revenue and gross profit both higher.
Monitor the trend in cost of revenue relative to revenue, as its recent increase outpaced revenue growth compared to the prior quarter.