Gilead Sciences, Inc. stock research
FY2025 Q1
Gilead Sciences (GILD) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and gross profit both decreased from the prior quarter, while cost of revenue declined to a lesser extent. This resulted in a lower gross margin compared to the previous quarter, but the margin was slightly higher than the same quarter a year ago.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue and gross profit both decreased from the prior quarter, while cost of revenue declined to a lesser extent. This resulted in a lower gross margin compared to the previous quarter, but the margin was slightly higher than the same quarter a year ago.
- The strongest margin driver is the relationship between revenue and cost of revenue: revenue declined from the prior quarter, but cost of revenue did not fall proportionally, compressing the margin.
- Compared to the prior quarter, gross margin weakened as revenue and gross profit fell while cost of revenue decreased only slightly. Compared to the same quarter a year earlier, the margin was stable, with revenue unchanged and cost of revenue slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
76.9%
Gross profit
$5.1B
Revenue
$6.7B
Cost of revenue
$1.5B
Quarter-over-quarter change
-2.2 pts
Year-over-year change
+0.1 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 |
|---|---|---|---|---|
| Jun 30, 2024 | $7.0B | $5.4B | $1.5B | 77.8% |
| Sep 30, 2024 | $7.5B | $6.0B | $1.6B | 79.1% |
| Dec 31, 2024 | $7.6B | $6.0B | $1.6B | 79.1% |
| Mar 31, 2025 | $6.7B | $5.1B | $1.5B | 76.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-2.2 pts
Year-over-year change
Mar 31, 2024
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest margin driver is the relationship between revenue and cost of revenue: revenue declined from the prior quarter, but cost of revenue did not fall proportionally, compressing the margin.
Compared to the prior quarter, gross margin weakened as revenue and gross profit fell while cost of revenue decreased only slightly. Compared to the same quarter a year earlier, the margin was stable, with revenue unchanged and cost of revenue slightly lower.
Monitor the trend in cost of revenue relative to revenue, as any change in this relationship could affect future gross margins.