Danaher Corporation stock research
FY2025 Q4
Danaher (DHR) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and cost of revenue both rose compared to the prior quarter, with gross profit increasing slightly more than cost of revenue, resulting in a gross margin that held nearly steady but was marginally lower. Versus the same quarter a year ago, revenue and gross profit increased while cost of revenue rose at a faster pace, leading to a weakened gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and cost of revenue both rose compared to the prior quarter, with gross profit increasing slightly more than cost of revenue, resulting in a gross margin that held nearly steady but was marginally lower. Versus the same quarter a year ago, revenue and gross profit increased while cost of revenue rose at a faster pace, leading to a weakened gross margin.
- The strongest observable margin driver was the relationship between revenue growth and cost of revenue growth; revenue increased at a slightly faster rate than cost of revenue sequentially, keeping gross margin nearly stable. The margin weakened from the prior year because cost of revenue grew more than revenue relative to the base period.
- Compared to the immediately preceding quarter, gross margin was slightly lower despite higher revenue and gross profit. Versus the same quarter one year earlier, gross margin was lower, with revenue and gross profit both higher but cost of revenue rising more sharply.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
58.0%
Gross profit
$4.0B
Revenue
$6.8B
Cost of revenue
$2.9B
Quarter-over-quarter change
-0.2 pts
Year-over-year change
-1.5 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 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% |
| Dec 31, 2025 | $6.8B | $4.0B | $2.9B | 58.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 26, 2025
-0.2 pts
Year-over-year change
Dec 31, 2024
-1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the relationship between revenue growth and cost of revenue growth; revenue increased at a slightly faster rate than cost of revenue sequentially, keeping gross margin nearly stable. The margin weakened from the prior year because cost of revenue grew more than revenue relative to the base period.
Compared to the immediately preceding quarter, gross margin was slightly lower despite higher revenue and gross profit. Versus the same quarter one year earlier, gross margin was lower, with revenue and gross profit both higher but cost of revenue rising more sharply.
Monitor the growth rate of cost of revenue relative to revenue, as it outpaced revenue on a year-over-year basis and compressed margin.