Elevance Health, Inc. stock research
FY2025 Q4
Elevance Health (ELV) Gross Margin — Quarter Ended Dec 31, 2025
Revenue decreased from the previous quarter, while cost of revenue increased slightly, leading to a lower gross profit and a weakened gross margin. Compared to the same quarter a year earlier, revenue was higher and cost of revenue was lower, resulting in improved gross profit and gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue decreased from the previous quarter, while cost of revenue increased slightly, leading to a lower gross profit and a weakened gross margin. Compared to the same quarter a year earlier, revenue was higher and cost of revenue was lower, resulting in improved gross profit and gross margin.
- The relationship between revenue and cost of revenue is the strongest observable driver. The year-over-year improvement in gross margin was supported by both higher revenue and lower cost of revenue, while the sequential decline reflects a slight increase in cost of revenue alongside a decrease in revenue.
- Gross margin weakened from the prior quarter, but improved from the same quarter a year ago. The sequential decline accompanied a reduction in revenue and a small increase in cost of revenue; the year-over-year improvement accompanied higher revenue and lower cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
88.9%
Gross profit
$44.2B
Revenue
$49.7B
Cost of revenue
$5.5B
Quarter-over-quarter change
-0.5 pts
Year-over-year change
+2.1 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 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% |
| Dec 31, 2025 | $49.7B | $44.2B | $5.5B | 88.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-0.5 pts
Year-over-year change
Dec 31, 2024
+2.1 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 is the strongest observable driver. The year-over-year improvement in gross margin was supported by both higher revenue and lower cost of revenue, while the sequential decline reflects a slight increase in cost of revenue alongside a decrease in revenue.
Gross margin weakened from the prior quarter, but improved from the same quarter a year ago. The sequential decline accompanied a reduction in revenue and a small increase in cost of revenue; the year-over-year improvement accompanied higher revenue and lower cost of revenue.
Monitor the trajectory of cost of revenue, as its movement relative to revenue directly affects gross margin.