Stryker Corporation stock research
FY2025 Q1
Stryker (SYK) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and gross profit decreased from the prior quarter but increased from the same quarter a year earlier; cost of revenue followed a similar pattern. As a result, gross margin weakened sequentially while improving year over year.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue and gross profit decreased from the prior quarter but increased from the same quarter a year earlier; cost of revenue followed a similar pattern. As a result, gross margin weakened sequentially while improving year over year.
- The most observable driver is the year-over-year expansion of gross margin, which rose despite a higher cost of revenue base, indicating that revenue growth outpaced cost growth relative to the prior year. The sequential decline in gross margin reflects a sharper contraction in revenue relative to cost of revenue from the prior quarter.
- Compared to the immediately preceding quarter, gross margin was lower as revenue fell more than cost of revenue. Compared to the same quarter one year earlier, gross margin was higher, with revenue growing faster than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
63.8%
Gross profit
$3.7B
Revenue
$5.9B
Cost of revenue
$2.1B
Quarter-over-quarter change
-0.2 pts
Year-over-year change
+0.3 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 |
|---|---|---|---|---|
| Mar 31, 2024 | $5.2B | $3.3B | $1.9B | 63.6% |
| Jun 30, 2024 | $5.4B | $3.4B | $2.0B | 63.0% |
| Sep 30, 2024 | $5.5B | $3.5B | $2.0B | 64.0% |
| Mar 31, 2025 | $5.9B | $3.7B | $2.1B | 63.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.2 pts
Year-over-year change
Mar 31, 2024
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver is the year-over-year expansion of gross margin, which rose despite a higher cost of revenue base, indicating that revenue growth outpaced cost growth relative to the prior year. The sequential decline in gross margin reflects a sharper contraction in revenue relative to cost of revenue from the prior quarter.
Compared to the immediately preceding quarter, gross margin was lower as revenue fell more than cost of revenue. Compared to the same quarter one year earlier, gross margin was higher, with revenue growing faster than cost of revenue.
Monitor the trend in cost of revenue relative to revenue, as the sequential decline in revenue magnified the margin compression.