GE

GE HealthCare Technologies Inc. stock research

Mar 31, 2025

FY2025 Q1

GE HealthCare Technologies (GEHC) Gross Margin — Quarter Ended Mar 31, 2025

Revenue and gross profit in the current quarter declined from the immediately preceding quarter but grew compared with the same quarter one year earlier. Gross margin weakened slightly from the prior quarter yet improved year over year, reflecting a mixed performance across the two comparison periods.

Gross margin takeaway

Quarter ended Mar 31, 2025 · FY2025 Q1

Revenue and gross profit in the current quarter declined from the immediately preceding quarter but grew compared with the same quarter one year earlier. Gross margin weakened slightly from the prior quarter yet improved year over year, reflecting a mixed performance across the two comparison periods.

  • The strongest observable margin driver is the relationship between revenue and cost of revenue: year-over-year, cost grew slower than revenue, lifting gross margin; sequentially, cost fell proportionally more than revenue, leading to a small margin decline.
  • Compared with the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Compared with the same quarter one year earlier, all three metrics were higher and gross margin improved.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

42.1%

Gross profit

$2.0B

Revenue

$4.8B

Cost of revenue

$2.8B

Quarter-over-quarter change

-0.7 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.

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2024$4.8B$2.0B$2.8B41.4%
Sep 30, 2024$4.9B$2.0B$2.8B41.7%
Dec 31, 2024$5.3B$2.3B$3.0B42.8%
Mar 31, 2025$4.8B$2.0B$2.8B42.1%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 31, 2024

-0.7 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 relationship between revenue and cost of revenue: year-over-year, cost grew slower than revenue, lifting gross margin; sequentially, cost fell proportionally more than revenue, leading to a small margin decline.

Compared with the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Compared with the same quarter one year earlier, all three metrics were higher and gross margin improved.

Monitor whether gross margin can stabilize or strengthen in upcoming periods, given the sequential decline despite year-over-year improvement.