Elevance Health, Inc. stock research
FY2025 Q3
Elevance Health (ELV) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit were higher than both the preceding quarter and the same quarter one year earlier. Cost of revenue also increased, but the gross margin remained unchanged from the prior quarter and improved relative to the year-ago period.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue and gross profit were higher than both the preceding quarter and the same quarter one year earlier. Cost of revenue also increased, but the gross margin remained unchanged from the prior quarter and improved relative to the year-ago period.
- The gross margin was stable sequentially, indicating that the increase in revenue was matched by a proportional increase in cost of revenue. The year-over-year improvement in gross margin reflects a more favorable relationship between revenue and cost of revenue compared to the prior year.
- Sequentially, revenue and gross profit increased while the gross margin held steady. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were all higher, and the gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
89.4%
Gross profit
$45.3B
Revenue
$50.7B
Cost of revenue
$5.4B
Quarter-over-quarter change
+0.0 pts
Year-over-year change
+0.7 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 | $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% |
| Sep 30, 2025 | $50.7B | $45.3B | $5.4B | 89.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+0.0 pts
Year-over-year change
Sep 30, 2024
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin was stable sequentially, indicating that the increase in revenue was matched by a proportional increase in cost of revenue. The year-over-year improvement in gross margin reflects a more favorable relationship between revenue and cost of revenue compared to the prior year.
Sequentially, revenue and gross profit increased while the gross margin held steady. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were all higher, and the gross margin also improved.
Monitor the trajectory of cost of revenue in relation to revenue, as shifts in this ratio could alter the gross margin.