Veralto Corporation stock research
FY2025 Q1
Veralto (VLTO) Gross Margin — Quarter Ended Apr 4, 2025
Revenue was stable compared to the prior quarter, while cost of revenue decreased, leading to higher gross profit and an improved gross margin. Year over year, revenue increased and gross profit rose more than proportionally, resulting in a slightly higher gross margin.
Gross margin takeaway
Quarter ended Apr 4, 2025 · FY2025 Q1
Revenue was stable compared to the prior quarter, while cost of revenue decreased, leading to higher gross profit and an improved gross margin. Year over year, revenue increased and gross profit rose more than proportionally, resulting in a slightly higher gross margin.
- The sequential improvement in gross margin was driven by a lower cost of revenue, as revenue remained unchanged. Year over year, revenue growth alongside controlled cost growth supported margin expansion.
- Gross margin strengthened compared to the immediately preceding quarter. It was also higher than the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.4%
Gross profit
$805.0M
Revenue
$1.3B
Cost of revenue
$527.0M
Quarter-over-quarter change
+0.9 pts
Year-over-year change
+0.5 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 28, 2024 | $1.3B | $774.0M | $514.0M | 60.1% |
| Sep 27, 2024 | $1.3B | $783.0M | $531.0M | 59.6% |
| Dec 31, 2024 | $1.3B | $801.0M | $544.0M | 59.6% |
| Apr 4, 2025 | $1.3B | $805.0M | $527.0M | 60.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+0.9 pts
Year-over-year change
Mar 29, 2024
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was driven by a lower cost of revenue, as revenue remained unchanged. Year over year, revenue growth alongside controlled cost growth supported margin expansion.
Gross margin strengthened compared to the immediately preceding quarter. It was also higher than the same quarter one year earlier.
Monitor whether cost of revenue can continue to decline or stabilize relative to revenue, as it was the key factor in the margin improvement.