Eli Lilly and Company stock research
FY2025 Q1
Eli Lilly and (LLY) Gross Margin — Quarter Ended Mar 31, 2025
Revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross profit followed a similar pattern, while cost of revenue declined sequentially and rose year-over-year, resulting in a gross margin that improved both sequentially and relative to the year-ago period.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross profit followed a similar pattern, while cost of revenue declined sequentially and rose year-over-year, resulting in a gross margin that improved both sequentially and relative to the year-ago period.
- The gross margin percentage was higher than both the immediately preceding quarter and the same quarter one year earlier, indicating an improved relationship between revenue and cost of revenue.
- Compared to the prior quarter, revenue and gross profit were lower, but cost of revenue was also lower, leading to a slightly higher gross margin. Versus the year-ago quarter, all three metrics—revenue, gross profit, and cost of revenue—were higher, with gross margin showing a more pronounced improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
82.5%
Gross profit
$10.5B
Revenue
$12.7B
Cost of revenue
$2.2B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+1.6 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 |
|---|---|---|---|---|
| Jun 30, 2024 | $11.3B | $9.1B | $2.2B | 80.8% |
| Sep 30, 2024 | $11.4B | $9.3B | $2.2B | 81.0% |
| Dec 31, 2024 | $13.5B | $11.1B | $2.4B | 82.2% |
| Mar 31, 2025 | $12.7B | $10.5B | $2.2B | 82.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+0.3 pts
Year-over-year change
Mar 31, 2024
+1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin percentage was higher than both the immediately preceding quarter and the same quarter one year earlier, indicating an improved relationship between revenue and cost of revenue.
Compared to the prior quarter, revenue and gross profit were lower, but cost of revenue was also lower, leading to a slightly higher gross margin. Versus the year-ago quarter, all three metrics—revenue, gross profit, and cost of revenue—were higher, with gross margin showing a more pronounced improvement.
Monitor the trend in cost of revenue relative to revenue, as its sequential decline contributed to margin improvement while its year-over-year increase was outpaced by revenue growth.