GE

GE Vernova Inc. stock research

Mar 31, 2025

FY2025 Q1

GE Vernova (GEV) Gross Margin — Quarter Ended Mar 31, 2025

Revenue and gross profit declined from the prior quarter but rose compared to the same quarter last year. Gross margin weakened sequentially while improving year-over-year, driven by changes in cost of revenue relative to revenue.

Gross margin takeaway

Quarter ended Mar 31, 2025 · FY2025 Q1

Revenue and gross profit declined from the prior quarter but rose compared to the same quarter last year. Gross margin weakened sequentially while improving year-over-year, driven by changes in cost of revenue relative to revenue.

  • The primary driver was the relationship between cost of revenue and revenue: cost decreased less than revenue sequentially and increased less than revenue year-over-year.
  • Compared to the prior quarter, revenue, gross profit, and gross margin were all lower. Compared to the same quarter last year, revenue, gross profit, and gross margin were all higher.

Gross margin snapshot

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

Gross margin

18.3%

Gross profit

$1.5B

Revenue

$8.0B

Cost of revenue

$6.6B

Quarter-over-quarter change

-1.8 pts

Year-over-year change

+2.5 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$8.2B$1.7B$6.5B20.7%
Sep 30, 2024$8.9B$1.1B$7.8B12.4%
Dec 31, 2024$10.6B$2.1B$8.4B20.1%
Mar 31, 2025$8.0B$1.5B$6.6B18.3%

Quarterly comparisons

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

Previous-quarter change

Dec 31, 2024

-1.8 pts

Year-over-year change

Mar 31, 2024

+2.5 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The primary driver was the relationship between cost of revenue and revenue: cost decreased less than revenue sequentially and increased less than revenue year-over-year.

Compared to the prior quarter, revenue, gross profit, and gross margin were all lower. Compared to the same quarter last year, revenue, gross profit, and gross margin were all higher.

Monitor the trend in cost of revenue relative to revenue in future quarters.