Stryker Corporation stock research
FY2025 Q3
Stryker (SYK) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was stable sequentially and higher year over year. Gross margin weakened slightly from both the preceding quarter and the year-ago period, reflecting a modestly larger share of cost in revenue.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was stable sequentially and higher year over year. Gross margin weakened slightly from both the preceding quarter and the year-ago period, reflecting a modestly larger share of cost in revenue.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue compared to the year-ago quarter, but the cost share rose slightly, leading to a marginal gross margin decline.
- Compared to the immediately preceding quarter, gross margin was slightly lower despite higher revenue and gross profit, as cost of revenue remained unchanged. Versus the same quarter one year earlier, gross margin also weakened, with revenue and gross profit higher but cost of revenue increasing at a faster relative pace.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
63.6%
Gross profit
$3.9B
Revenue
$6.1B
Cost of revenue
$2.2B
Quarter-over-quarter change
-0.2 pts
Year-over-year change
-0.4 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, 2024 | $5.5B | $3.5B | $2.0B | 64.0% |
| Mar 31, 2025 | $5.9B | $3.7B | $2.1B | 63.8% |
| Jun 30, 2025 | $6.0B | $3.8B | $2.2B | 63.8% |
| Sep 30, 2025 | $6.1B | $3.9B | $2.2B | 63.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-0.2 pts
Year-over-year change
Sep 30, 2024
-0.4 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 revenue growth and cost of revenue growth. Revenue increased more than cost of revenue compared to the year-ago quarter, but the cost share rose slightly, leading to a marginal gross margin decline.
Compared to the immediately preceding quarter, gross margin was slightly lower despite higher revenue and gross profit, as cost of revenue remained unchanged. Versus the same quarter one year earlier, gross margin also weakened, with revenue and gross profit higher but cost of revenue increasing at a faster relative pace.
Monitor the trend in cost of revenue relative to revenue, as its stable sequential level but higher year-over-year proportion contributed to the slight gross margin compression.