McKesson Corporation stock research
FY2025 Q2
McKesson (MCK) Gross Margin — Quarter Ended Sep 30, 2024
Revenue was higher than both the prior quarter and the same quarter last year. Gross profit was similar to the prior quarter and slightly higher than a year ago, but gross margin weakened because cost of revenue increased at a faster pace than revenue.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2025 Q2
Revenue was higher than both the prior quarter and the same quarter last year. Gross profit was similar to the prior quarter and slightly higher than a year ago, but gross margin weakened because cost of revenue increased at a faster pace than revenue.
- Gross margin decreased from the immediately preceding quarter and from the same quarter one year earlier, reflecting that cost of revenue grew more quickly than revenue in both comparisons.
- Compared with the prior quarter, revenue increased while gross profit remained at the same level, causing gross margin to be lower. Compared with the same quarter a year ago, revenue and gross profit were both higher, but gross margin was lower because cost of revenue increased more than gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
3.5%
Gross profit
$3.2B
Revenue
$93.7B
Cost of revenue
$90.4B
Quarter-over-quarter change
-0.5 pts
Year-over-year change
-0.5 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, 2023 | $80.9B | $3.2B | $77.7B | 3.9% |
| Mar 31, 2024 | $76.4B | $3.6B | $72.8B | 4.7% |
| Jun 30, 2024 | $79.3B | $3.2B | $76.1B | 4.0% |
| Sep 30, 2024 | $93.7B | $3.2B | $90.4B | 3.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-0.5 pts
Year-over-year change
Sep 30, 2023
-0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin decreased from the immediately preceding quarter and from the same quarter one year earlier, reflecting that cost of revenue grew more quickly than revenue in both comparisons.
Compared with the prior quarter, revenue increased while gross profit remained at the same level, causing gross margin to be lower. Compared with the same quarter a year ago, revenue and gross profit were both higher, but gross margin was lower because cost of revenue increased more than gross profit.
Monitor the trend of cost of revenue relative to revenue, as its faster increase drove the gross margin decline in both comparisons.