Henry Schein, Inc. stock research
FY2025 Q3
Henry Schein (HSIC) Gross Margin — Quarter Ended Sep 27, 2025
Revenue increased while cost of revenue also increased, resulting in gross profit remaining stable. Consequently, gross margin weakened as cost growth outpaced revenue growth.
Gross margin takeaway
Quarter ended Sep 27, 2025 · FY2025 Q3
Revenue increased while cost of revenue also increased, resulting in gross profit remaining stable. Consequently, gross margin weakened as cost growth outpaced revenue growth.
- The strongest observable margin driver is the faster growth in cost of revenue relative to revenue, which compressed gross margin. The filing discusses working capital requirements related to inventory buy-in opportunities and sales seasonality, factors that may influence cost of revenue.
- Compared to the immediately preceding quarter, revenue was higher, cost of revenue was higher, gross profit was stable, and gross margin was lower. Compared to the same quarter one year earlier, revenue was higher, cost of revenue was higher, gross profit was higher, and gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
30.7%
Gross profit
$1.0B
Revenue
$3.3B
Cost of revenue
$2.3B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-0.6 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 |
|---|---|---|---|---|
| Dec 28, 2024 | $3.2B | $993.0M | $2.2B | 31.1% |
| Mar 29, 2025 | $3.2B | $1.0B | $2.2B | 31.6% |
| Jun 28, 2025 | $3.2B | $1.0B | $2.2B | 31.4% |
| Sep 27, 2025 | $3.3B | $1.0B | $2.3B | 30.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 28, 2025
-0.6 pts
Year-over-year change
Sep 28, 2024
-0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the faster growth in cost of revenue relative to revenue, which compressed gross margin. The filing discusses working capital requirements related to inventory buy-in opportunities and sales seasonality, factors that may influence cost of revenue.
Compared to the immediately preceding quarter, revenue was higher, cost of revenue was higher, gross profit was stable, and gross margin was lower. Compared to the same quarter one year earlier, revenue was higher, cost of revenue was higher, gross profit was higher, and gross margin was lower.
Monitor the trend in cost of revenue growth relative to revenue growth, as it directly impacts gross margin.