STERIS plc stock research
FY2025 Q2
STERIS (STE) Gross Margin — Quarter Ended Sep 30, 2024
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit improved relative to both periods, while cost of revenue increased from the prior quarter and was higher year over year, resulting in a gross margin that weakened from the prior quarter but improved compared to the same quarter last year.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2025 Q2
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit improved relative to both periods, while cost of revenue increased from the prior quarter and was higher year over year, resulting in a gross margin that weakened from the prior quarter but improved compared to the same quarter last year.
- Gross profit grew more than revenue compared to the year-ago quarter, supporting a higher gross margin. The sequential decline in gross margin was driven by a proportionally larger increase in cost of revenue relative to revenue.
- Compared to the prior quarter, revenue was stable, gross profit was slightly higher, and cost of revenue increased, leading to a lower gross margin. Versus the same quarter last year, revenue, gross profit, and cost of revenue were all higher, with gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.6%
Gross profit
$578.8M
Revenue
$1.3B
Cost of revenue
$750.1M
Quarter-over-quarter change
-1.2 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, 2023 | $1.2B | $546.2M | $692.0M | 44.1% |
| Dec 31, 2023 | $1.3B | $560.0M | $737.7M | 43.2% |
| Jun 30, 2024 | $1.3B | $572.4M | $707.1M | 44.7% |
| Sep 30, 2024 | $1.3B | $578.8M | $750.1M | 43.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-1.2 pts
Year-over-year change
Sep 30, 2023
-0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew more than revenue compared to the year-ago quarter, supporting a higher gross margin. The sequential decline in gross margin was driven by a proportionally larger increase in cost of revenue relative to revenue.
Compared to the prior quarter, revenue was stable, gross profit was slightly higher, and cost of revenue increased, leading to a lower gross margin. Versus the same quarter last year, revenue, gross profit, and cost of revenue were all higher, with gross margin improved.
Monitor the trajectory of cost of revenue relative to revenue, as its increase outpaced revenue growth sequentially and contributed to the gross margin decline.