Veralto Corporation stock research
FY2025 Q2
Veralto (VLTO) Gross Margin — Quarter Ended Jul 4, 2025
Revenue increased compared with the prior quarter and the same quarter a year ago, while gross profit also rose in both sequential and year-over-year comparisons. Cost of revenue grew slightly faster than revenue on a sequential basis, leading to a minor weakening in gross margin, though gross margin remained broadly stable when compared with the same period last year.
Gross margin takeaway
Quarter ended Jul 4, 2025 · FY2025 Q2
Revenue increased compared with the prior quarter and the same quarter a year ago, while gross profit also rose in both sequential and year-over-year comparisons. Cost of revenue grew slightly faster than revenue on a sequential basis, leading to a minor weakening in gross margin, though gross margin remained broadly stable when compared with the same period last year.
- The relationship between revenue and cost of revenue is the strongest observable driver. Revenue growth outpaced cost of revenue growth on a year-over-year basis, supporting gross profit expansion, while the sequential quarter shows cost of revenue growth slightly exceeding revenue growth, which narrowed gross margin.
- Compared with the immediately preceding quarter, gross margin was slightly lower, with revenue and gross profit higher but cost of revenue increasing at a marginally faster pace. Compared with the same quarter one year earlier, gross margin was broadly stable, with both revenue and gross profit higher and cost of revenue also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.0%
Gross profit
$822.0M
Revenue
$1.4B
Cost of revenue
$549.0M
Quarter-over-quarter change
-0.5 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 |
|---|---|---|---|---|
| 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% |
| Jul 4, 2025 | $1.4B | $822.0M | $549.0M | 60.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 4, 2025
-0.5 pts
Year-over-year change
Jun 28, 2024
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue is the strongest observable driver. Revenue growth outpaced cost of revenue growth on a year-over-year basis, supporting gross profit expansion, while the sequential quarter shows cost of revenue growth slightly exceeding revenue growth, which narrowed gross margin.
Compared with the immediately preceding quarter, gross margin was slightly lower, with revenue and gross profit higher but cost of revenue increasing at a marginally faster pace. Compared with the same quarter one year earlier, gross margin was broadly stable, with both revenue and gross profit higher and cost of revenue also higher.
Monitor the relationship between revenue growth and cost-of-revenue growth in future quarters to assess whether gross margin trends remain stable or narrow further.