GE HealthCare Technologies Inc. stock research
FY2025 Q2
GE HealthCare Technologies (GEHC) Gross Margin — Quarter Ended Jun 30, 2025
Revenue increased relative to both the prior quarter and the same quarter last year, while gross profit remained flat. Gross margin weakened compared with both periods, as cost of revenue rose at a faster rate than revenue.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue increased relative to both the prior quarter and the same quarter last year, while gross profit remained flat. Gross margin weakened compared with both periods, as cost of revenue rose at a faster rate than revenue.
- The most notable observable driver is the increase in cost of revenue, which grew proportionally more than revenue and compressed gross margin. The flat gross profit despite higher revenue indicates margin pressure from the cost side.
- Compared with the immediately preceding quarter, gross margin weakened by about two and a half percentage points, and compared with the same quarter one year earlier, gross margin weakened by nearly two percentage points. Revenue was higher in both comparisons, while cost of revenue increased more than revenue, causing gross profit to remain unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.6%
Gross profit
$2.0B
Revenue
$5.0B
Cost of revenue
$3.0B
Quarter-over-quarter change
-2.5 pts
Year-over-year change
-1.7 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 |
|---|---|---|---|---|
| Sep 30, 2024 | $4.9B | $2.0B | $2.8B | 41.7% |
| Dec 31, 2024 | $5.3B | $2.3B | $3.0B | 42.8% |
| Mar 31, 2025 | $4.8B | $2.0B | $2.8B | 42.1% |
| Jun 30, 2025 | $5.0B | $2.0B | $3.0B | 39.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-2.5 pts
Year-over-year change
Jun 30, 2024
-1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable observable driver is the increase in cost of revenue, which grew proportionally more than revenue and compressed gross margin. The flat gross profit despite higher revenue indicates margin pressure from the cost side.
Compared with the immediately preceding quarter, gross margin weakened by about two and a half percentage points, and compared with the same quarter one year earlier, gross margin weakened by nearly two percentage points. Revenue was higher in both comparisons, while cost of revenue increased more than revenue, causing gross profit to remain unchanged.
Monitor the trajectory of cost of revenue relative to revenue, as its disproportionate growth has directly weakened gross margin.