Elevance Health, Inc. stock research
FY2025 Q1
Elevance Health (ELV) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved from the prior quarter but weakened compared to the same quarter last year, as cost of revenue decreased sequentially but increased year-over-year.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved from the prior quarter but weakened compared to the same quarter last year, as cost of revenue decreased sequentially but increased year-over-year.
- The strongest observable margin driver is the shift in the proportion of cost of revenue to revenue. Gross margin improved sequentially because cost of revenue fell while revenue rose, but declined year-over-year as cost of revenue increased more than revenue.
- Compared to the prior quarter, gross margin improved. Compared to the same quarter last year, gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
89.8%
Gross profit
$43.9B
Revenue
$48.9B
Cost of revenue
$5.0B
Quarter-over-quarter change
+3.0 pts
Year-over-year change
-1.2 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 30, 2024 | $43.9B | $39.1B | $4.8B | 89.0% |
| Sep 30, 2024 | $45.1B | $40.0B | $5.1B | 88.7% |
| Dec 31, 2024 | $45.4B | $39.4B | $6.0B | 86.8% |
| Mar 31, 2025 | $48.9B | $43.9B | $5.0B | 89.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+3.0 pts
Year-over-year change
Mar 31, 2024
-1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the shift in the proportion of cost of revenue to revenue. Gross margin improved sequentially because cost of revenue fell while revenue rose, but declined year-over-year as cost of revenue increased more than revenue.
Compared to the prior quarter, gross margin improved. Compared to the same quarter last year, gross margin weakened.
Monitor the trend in cost of revenue relative to revenue, as it has varied significantly between periods.