STERIS plc stock research
FY2025 Q4
STERIS (STE) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved versus the year-ago period but weakened sequentially from the preceding quarter.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved versus the year-ago period but weakened sequentially from the preceding quarter.
- Gross profit grew faster than cost of revenue relative to the year-ago quarter, driving margin expansion. Sequentially, cost of revenue increased at a higher rate than gross profit, compressing margin.
- Compared to the preceding quarter, gross margin was lower despite higher revenue and gross profit. Compared to the same quarter one year earlier, gross margin was higher, with gross profit rising more than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.3%
Gross profit
$641.2M
Revenue
$1.5B
Cost of revenue
$839.4M
Quarter-over-quarter change
-1.2 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 |
|---|---|---|---|---|
| Jun 30, 2024 | $1.3B | $572.4M | $707.1M | 44.7% |
| Sep 30, 2024 | $1.3B | $578.8M | $750.1M | 43.6% |
| Dec 31, 2024 | $1.4B | $610.3M | $760.2M | 44.5% |
| Mar 31, 2025 | $1.5B | $641.2M | $839.4M | 43.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-1.2 pts
Year-over-year change
Mar 31, 2024
+2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew faster than cost of revenue relative to the year-ago quarter, driving margin expansion. Sequentially, cost of revenue increased at a higher rate than gross profit, compressing margin.
Compared to the preceding quarter, gross margin was lower despite higher revenue and gross profit. Compared to the same quarter one year earlier, gross margin was higher, with gross profit rising more than cost of revenue.
Monitor the relationship between cost of revenue and revenue growth in upcoming quarters to assess margin sustainability.