McKesson Corporation stock research
FY2026 Q1
McKesson (MCK) Gross Margin — Quarter Ended Jun 30, 2025
Revenue was higher than the prior quarter, but gross profit was lower, resulting in a weakened gross margin. Compared to the same quarter last year, both revenue and gross profit were higher, yet the gross margin was lower due to a proportionally larger increase in cost of revenue.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2026 Q1
Revenue was higher than the prior quarter, but gross profit was lower, resulting in a weakened gross margin. Compared to the same quarter last year, both revenue and gross profit were higher, yet the gross margin was lower due to a proportionally larger increase in cost of revenue.
- The margin change was most closely associated with the relative movement of cost of revenue compared to revenue. Sequentially, cost of revenue increased more than revenue, compressing gross margin.
- Compared to the immediately preceding quarter, gross margin weakened as gross profit declined despite higher revenue. Compared to the same quarter one year earlier, gross margin also weakened, as revenue growth was accompanied by a proportionally larger increase in cost of revenue.
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
$97.8B
Cost of revenue
$94.5B
Quarter-over-quarter change
-0.7 pts
Year-over-year change
-0.6 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2025 | $97.8B | $3.3B | $94.5B | 3.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-0.7 pts
Year-over-year change
Jun 30, 2024
-0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The margin change was most closely associated with the relative movement of cost of revenue compared to revenue. Sequentially, cost of revenue increased more than revenue, compressing gross margin.
Compared to the immediately preceding quarter, gross margin weakened as gross profit declined despite higher revenue. Compared to the same quarter one year earlier, gross margin also weakened, as revenue growth was accompanied by a proportionally larger increase in cost of revenue.
Monitor the trend in cost of revenue growth relative to revenue growth in upcoming quarters.