McKesson Corporation stock research
FY2025 Q3
McKesson (MCK) Gross Margin — Quarter Ended Dec 31, 2024
Revenue increased both sequentially and year-over-year, while cost of revenue also rose in absolute terms. Gross profit increased, but gross margin weakened as the proportion of cost of revenue to revenue increased.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2025 Q3
Revenue increased both sequentially and year-over-year, while cost of revenue also rose in absolute terms. Gross profit increased, but gross margin weakened as the proportion of cost of revenue to revenue increased.
- The primary observable driver of the gross margin decline is the larger relative increase in cost of revenue compared to revenue.
- Compared to the prior quarter, revenue was higher and gross profit was higher, but gross margin was lower. Compared to the same quarter last year, revenue was higher and gross profit was slightly higher, while gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
3.4%
Gross profit
$3.3B
Revenue
$95.3B
Cost of revenue
$92.0B
Quarter-over-quarter change
-0.0 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2024 | $95.3B | $3.3B | $92.0B | 3.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.0 pts
Year-over-year change
Dec 31, 2023
-0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the gross margin decline is the larger relative increase in cost of revenue compared to revenue.
Compared to the prior quarter, revenue was higher and gross profit was higher, but gross margin was lower. Compared to the same quarter last year, revenue was higher and gross profit was slightly higher, while gross margin was lower.
Monitor the trend of gross margin relative to revenue growth in upcoming quarters.