Labcorp Holdings Inc. stock research
FY2025 Q3
Labcorp Holdings (LH) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter but improved relative to the year-ago period.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter but improved relative to the year-ago period.
- Gross profit grew faster than cost of revenue on a year-over-year basis, supporting the margin improvement. The sequential decline in gross margin despite higher revenue suggests cost growth outpaced revenue growth in the near term.
- Compared to the prior quarter, gross margin was lower, with revenue higher and cost of revenue unchanged. Compared to the same quarter last year, gross margin was higher, driven by a larger increase in gross profit relative to cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
28.8%
Gross profit
$1.0B
Revenue
$3.6B
Cost of revenue
$2.5B
Quarter-over-quarter change
-0.9 pts
Year-over-year change
+1.2 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 31, 2024 | $3.3B | $896.3M | $2.4B | 26.9% |
| Mar 31, 2025 | $3.3B | $948.0M | $2.4B | 28.3% |
| Jun 30, 2025 | $3.5B | $1.0B | $2.5B | 29.7% |
| Sep 30, 2025 | $3.6B | $1.0B | $2.5B | 28.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-0.9 pts
Year-over-year change
Sep 30, 2024
+1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew faster than cost of revenue on a year-over-year basis, supporting the margin improvement. The sequential decline in gross margin despite higher revenue suggests cost growth outpaced revenue growth in the near term.
Compared to the prior quarter, gross margin was lower, with revenue higher and cost of revenue unchanged. Compared to the same quarter last year, gross margin was higher, driven by a larger increase in gross profit relative to cost of revenue.
Monitor the trajectory of cost of revenue relative to revenue, as the sequential margin compression indicates cost growth may be accelerating.