Eli Lilly and Company stock research
FY2025 Q4
Eli Lilly and (LLY) Gross Margin — Quarter Ended Dec 31, 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 was slightly lower than the prior quarter but higher than the year-ago period.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
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 was slightly lower than the prior quarter but higher than the year-ago period.
- The primary observable driver of gross margin was the change in cost of revenue relative to revenue. Sequentially, cost of revenue increased at a slightly higher pace than revenue, causing a marginal compression in gross margin.
- Compared to the prior quarter, gross margin weakened slightly as cost of revenue grew more than revenue. Compared to the same quarter last year, gross margin improved as revenue growth outpaced cost of revenue growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
82.5%
Gross profit
$15.9B
Revenue
$19.3B
Cost of revenue
$3.4B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
+0.3 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 |
|---|---|---|---|---|
| Mar 31, 2025 | $12.7B | $10.5B | $2.2B | 82.5% |
| Jun 30, 2025 | $15.6B | $13.1B | $2.4B | 84.3% |
| Sep 30, 2025 | $17.6B | $14.6B | $3.0B | 82.9% |
| Dec 31, 2025 | $19.3B | $15.9B | $3.4B | 82.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-0.4 pts
Year-over-year change
Dec 31, 2024
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of gross margin was the change in cost of revenue relative to revenue. Sequentially, cost of revenue increased at a slightly higher pace than revenue, causing a marginal compression in gross margin.
Compared to the prior quarter, gross margin weakened slightly as cost of revenue grew more than revenue. Compared to the same quarter last year, gross margin improved as revenue growth outpaced cost of revenue growth.
Monitor the trajectory of cost of revenue relative to revenue, particularly in light of the company's ongoing manufacturing capacity investments noted in the filing.