Solventum Corporation stock research
FY2025 Q1
Solventum (SOLV) Gross Margin — Quarter Ended Mar 31, 2025
Revenue was stable compared to the prior quarter, while gross profit and cost of revenue were also essentially unchanged, resulting in a gross margin that was slightly lower. Compared to the same quarter one year earlier, revenue was higher, but gross profit was lower and cost of revenue was higher, leading to a weakened gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue was stable compared to the prior quarter, while gross profit and cost of revenue were also essentially unchanged, resulting in a gross margin that was slightly lower. Compared to the same quarter one year earlier, revenue was higher, but gross profit was lower and cost of revenue was higher, leading to a weakened gross margin.
- The strongest observable margin driver is the relationship between cost of revenue and revenue; cost of revenue increased more than revenue on a year-over-year basis, compressing gross profit. This shift is the primary factor behind the margin decline.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all essentially flat, with gross margin showing a slight weakening. Compared to the same quarter one year earlier, revenue was higher, but gross profit was lower and cost of revenue was higher, resulting in a materially weakened gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
53.8%
Gross profit
$1.1B
Revenue
$2.1B
Cost of revenue
$956.0M
Quarter-over-quarter change
-0.1 pts
Year-over-year change
-4.3 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 | $2.1B | $1.1B | $944.0M | 54.6% |
| Sep 30, 2024 | $2.1B | $1.2B | $917.0M | 56.0% |
| Dec 31, 2024 | $2.1B | $1.1B | $956.0M | 53.9% |
| Mar 31, 2025 | $2.1B | $1.1B | $956.0M | 53.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-0.1 pts
Year-over-year change
Mar 31, 2024
-4.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between cost of revenue and revenue; cost of revenue increased more than revenue on a year-over-year basis, compressing gross profit. This shift is the primary factor behind the margin decline.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all essentially flat, with gross margin showing a slight weakening. Compared to the same quarter one year earlier, revenue was higher, but gross profit was lower and cost of revenue was higher, resulting in a materially weakened gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth on a year-over-year basis has been the key factor in margin compression.