Elevance Health, Inc. stock research
FY2025 Q2
Elevance Health (ELV) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter a year earlier, while cost of revenue also rose. Gross margin was slightly lower than the prior quarter but higher than the same quarter a year earlier.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter a year earlier, while cost of revenue also rose. Gross margin was slightly lower than the prior quarter but higher than the same quarter a year earlier.
- The relationship between revenue growth and cost of revenue growth is the most observable driver. Cost of revenue increased at a pace that slightly outpaced revenue growth relative to the prior quarter, leading to a marginal weakening of gross margin.
- Compared to the prior quarter, revenue and gross profit were higher, but cost of revenue was also higher, resulting in a slightly lower gross margin. Versus the same quarter a year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
89.4%
Gross profit
$44.5B
Revenue
$49.8B
Cost of revenue
$5.3B
Quarter-over-quarter change
-0.4 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 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% |
| Jun 30, 2025 | $49.8B | $44.5B | $5.3B | 89.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-0.4 pts
Year-over-year change
Jun 30, 2024
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue growth and cost of revenue growth is the most observable driver. Cost of revenue increased at a pace that slightly outpaced revenue growth relative to the prior quarter, leading to a marginal weakening of gross margin.
Compared to the prior quarter, revenue and gross profit were higher, but cost of revenue was also higher, resulting in a slightly lower gross margin. Versus the same quarter a year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Monitor the trend in cost of revenue relative to revenue, as its growth rate influenced the sequential change in gross margin.