Merck & Co., Inc. stock research
FY2024 Q4
Merck & (MRK) Gross Margin — Quarter Ended Dec 31, 2024
Revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross profit followed a similar pattern, while cost of revenue was lower than both the prior quarter and the year-ago quarter, resulting in a gross margin that was unchanged from the prior quarter and improved from the year-ago quarter.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross profit followed a similar pattern, while cost of revenue was lower than both the prior quarter and the year-ago quarter, resulting in a gross margin that was unchanged from the prior quarter and improved from the year-ago quarter.
- The most notable margin driver is the improved gross margin relative to the same quarter last year, as revenue grew more than cost of revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin remained stable. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
75.5%
Gross profit
$11.8B
Revenue
$15.6B
Cost of revenue
$3.8B
Quarter-over-quarter change
-0.0 pts
Year-over-year change
+2.2 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 | $15.8B | $12.2B | $3.5B | 77.6% |
| Jun 30, 2024 | $16.1B | $12.4B | $3.7B | 76.8% |
| Sep 30, 2024 | $16.7B | $12.6B | $4.1B | 75.5% |
| Dec 31, 2024 | $15.6B | $11.8B | $3.8B | 75.5% |
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
+2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable margin driver is the improved gross margin relative to the same quarter last year, as revenue grew more than cost of revenue.
Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin remained stable. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved.
Monitor the trend in cost of revenue relative to revenue, as it directly influences gross margin stability.