Labcorp Holdings Inc. stock research
FY2025 Q1
Labcorp Holdings (LH) Gross Margin — Quarter Ended Mar 31, 2025
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit improved relative to both periods, while cost of revenue was stable sequentially and higher year over year, resulting in a gross margin that strengthened from the prior quarter but was nearly unchanged from a year ago.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit improved relative to both periods, while cost of revenue was stable sequentially and higher year over year, resulting in a gross margin that strengthened from the prior quarter but was nearly unchanged from a year ago.
- Gross profit increased from the prior quarter while revenue remained stable, indicating that the improvement in gross margin was driven by a lower proportion of cost of revenue relative to revenue. The year-over-year comparison shows gross profit and revenue both rose, with gross margin holding steady.
- Compared to the immediately preceding quarter, gross margin improved as gross profit grew while revenue was unchanged. Versus the same quarter one year earlier, gross margin was essentially stable, with both revenue and gross profit higher by similar proportions.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
28.3%
Gross profit
$948.0M
Revenue
$3.3B
Cost of revenue
$2.4B
Quarter-over-quarter change
+1.4 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 | $3.2B | $926.4M | $2.3B | 28.8% |
| Sep 30, 2024 | $3.3B | $904.4M | $2.4B | 27.6% |
| Dec 31, 2024 | $3.3B | $896.3M | $2.4B | 26.9% |
| Mar 31, 2025 | $3.3B | $948.0M | $2.4B | 28.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+1.4 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.
Gross profit increased from the prior quarter while revenue remained stable, indicating that the improvement in gross margin was driven by a lower proportion of cost of revenue relative to revenue. The year-over-year comparison shows gross profit and revenue both rose, with gross margin holding steady.
Compared to the immediately preceding quarter, gross margin improved as gross profit grew while revenue was unchanged. Versus the same quarter one year earlier, gross margin was essentially stable, with both revenue and gross profit higher by similar proportions.
Monitor whether the cost of revenue continues to grow at a pace similar to revenue, as any divergence could affect gross margin stability.