McKesson Corporation stock research
FY2025 Q4
McKesson (MCK) Gross Margin — Quarter Ended Mar 31, 2025
Revenue in the current quarter was lower than the previous quarter but higher than the same quarter last year. Gross profit increased sequentially while remaining level year-over-year, and cost of revenue decreased from the prior quarter but increased from a year ago, resulting in a gross margin that improved compared to the previous quarter but weakened relative to the same quarter last year.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q4
Revenue in the current quarter was lower than the previous quarter but higher than the same quarter last year. Gross profit increased sequentially while remaining level year-over-year, and cost of revenue decreased from the prior quarter but increased from a year ago, resulting in a gross margin that improved compared to the previous quarter but weakened relative to the same quarter last year.
- The strongest observable margin driver in the current quarter is the relationship between cost of revenue and revenue: cost of revenue decreased at a faster rate than revenue compared to the prior quarter, which lifted gross profit and margin.
- Compared to the previous quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
4.0%
Gross profit
$3.6B
Revenue
$90.8B
Cost of revenue
$87.2B
Quarter-over-quarter change
+0.6 pts
Year-over-year change
-0.7 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 | $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% |
| Mar 31, 2025 | $90.8B | $3.6B | $87.2B | 4.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+0.6 pts
Year-over-year change
Mar 31, 2024
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver in the current quarter is the relationship between cost of revenue and revenue: cost of revenue decreased at a faster rate than revenue compared to the prior quarter, which lifted gross profit and margin.
Compared to the previous quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
The filing highlights changes in working capital and days sales outstanding; these liquidity metrics should be monitored.