Sysco Corporation stock research
FY2025 Q2
Sysco (SYY) Gross Margin — Quarter Ended Dec 28, 2024
Revenue decreased compared to the prior quarter but increased year over year, while gross profit followed a similar pattern. The gross margin weakened slightly relative to both the preceding quarter and the same quarter last year, as cost of revenue declined less proportionally than revenue.
Gross margin takeaway
Quarter ended Dec 28, 2024 · FY2025 Q2
Revenue decreased compared to the prior quarter but increased year over year, while gross profit followed a similar pattern. The gross margin weakened slightly relative to both the preceding quarter and the same quarter last year, as cost of revenue declined less proportionally than revenue.
- The change in gross margin is primarily driven by the relationship between revenue and cost of revenue: in the current quarter, cost of revenue consumed a larger share of revenue compared to the prior quarter and the year-ago quarter.
- Compared to the prior quarter, revenue and gross profit were both lower, while cost of revenue also decreased, resulting in a slightly lower gross margin. Versus the same quarter a year ago, revenue and gross profit were higher, but cost of revenue grew at a faster pace, leaving the gross margin marginally below the prior year level.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
18.1%
Gross profit
$3.6B
Revenue
$20.2B
Cost of revenue
$16.5B
Quarter-over-quarter change
-0.2 pts
Year-over-year change
-0.1 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 30, 2024 | $19.4B | $3.6B | $15.8B | 18.6% |
| Jun 29, 2024 | $20.6B | $3.8B | $16.7B | 18.7% |
| Sep 28, 2024 | $20.5B | $3.8B | $16.7B | 18.3% |
| Dec 28, 2024 | $20.2B | $3.6B | $16.5B | 18.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 28, 2024
-0.2 pts
Year-over-year change
Dec 30, 2023
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The change in gross margin is primarily driven by the relationship between revenue and cost of revenue: in the current quarter, cost of revenue consumed a larger share of revenue compared to the prior quarter and the year-ago quarter.
Compared to the prior quarter, revenue and gross profit were both lower, while cost of revenue also decreased, resulting in a slightly lower gross margin. Versus the same quarter a year ago, revenue and gross profit were higher, but cost of revenue grew at a faster pace, leaving the gross margin marginally below the prior year level.
Monitor inventory levels, which increased from the end of fiscal 2024 to the current quarter, as changes in inventory may affect future cost of revenue.