Sysco Corporation stock research
FY2025 Q3
Sysco (SYY) Gross Margin — Quarter Ended Mar 29, 2025
Revenue and gross profit both decreased from the prior quarter, while cost of revenue also declined. Gross margin improved slightly compared to the prior quarter but weakened relative to the same quarter last year.
Gross margin takeaway
Quarter ended Mar 29, 2025 · FY2025 Q3
Revenue and gross profit both decreased from the prior quarter, while cost of revenue also declined. Gross margin improved slightly compared to the prior quarter but weakened relative to the same quarter last year.
- The gross margin improvement from the prior quarter was driven by a proportionally larger decline in cost of revenue relative to revenue. Compared to the same quarter last year, the margin weakened as cost of revenue decreased less than revenue.
- Compared to the prior quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter last year, revenue was higher, gross profit was stable, and gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
18.3%
Gross profit
$3.6B
Revenue
$19.6B
Cost of revenue
$16.0B
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 |
|---|---|---|---|---|
| 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% |
| Mar 29, 2025 | $19.6B | $3.6B | $16.0B | 18.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 28, 2024
+0.2 pts
Year-over-year change
Mar 30, 2024
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement from the prior quarter was driven by a proportionally larger decline in cost of revenue relative to revenue. Compared to the same quarter last year, the margin weakened as cost of revenue decreased less than revenue.
Compared to the prior quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter last year, revenue was higher, gross profit was stable, and gross margin was lower.
Monitor the relationship between revenue and cost of revenue trends, as the margin has weakened year-over-year despite higher revenue.