HS

Henry Schein, Inc. stock research

Jun 28, 2025

FY2025 Q2

Henry Schein (HSIC) Gross Margin — Quarter Ended Jun 28, 2025

Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit remained unchanged across all periods, while cost of revenue was higher year-over-year, leading to a lower gross margin both sequentially and compared to the prior year.

Gross margin takeaway

Quarter ended Jun 28, 2025 · FY2025 Q2

Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit remained unchanged across all periods, while cost of revenue was higher year-over-year, leading to a lower gross margin both sequentially and compared to the prior year.

  • The strongest observable driver is the year-over-year increase in cost of revenue relative to revenue. Revenue rose but cost of revenue rose more, compressing the gross margin.
  • Gross margin was slightly lower than the prior quarter and notably lower than the same quarter last year. The year-over-year decline was driven by higher cost of revenue with no change in gross profit.

Gross margin snapshot

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

Gross margin

31.4%

Gross profit

$1.0B

Revenue

$3.2B

Cost of revenue

$2.2B

Quarter-over-quarter change

-0.2 pts

Year-over-year change

-1.1 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 28, 2024$3.2B$993.0M$2.2B31.3%
Dec 28, 2024$3.2B$993.0M$2.2B31.1%
Mar 29, 2025$3.2B$1.0B$2.2B31.6%
Jun 28, 2025$3.2B$1.0B$2.2B31.4%

Quarterly comparisons

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

Previous-quarter change

Mar 29, 2025

-0.2 pts

Year-over-year change

Jun 29, 2024

-1.1 pts

What the margin says

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

The strongest observable driver is the year-over-year increase in cost of revenue relative to revenue. Revenue rose but cost of revenue rose more, compressing the gross margin.

Gross margin was slightly lower than the prior quarter and notably lower than the same quarter last year. The year-over-year decline was driven by higher cost of revenue with no change in gross profit.

Monitor cost of revenue trends, as they are the primary factor affecting gross margin direction.