Veralto Corporation stock research
FY2025 Q3
Veralto (VLTO) Gross Margin — Quarter Ended Oct 3, 2025
In the current quarter, revenue was slightly higher than the prior quarter while gross profit grew at a faster rate, causing gross margin to improve marginally. Compared to the same quarter last year, revenue rose notably and gross profit increased more than proportionally, leading to a stronger gross margin.
Gross margin takeaway
Quarter ended Oct 3, 2025 · FY2025 Q3
In the current quarter, revenue was slightly higher than the prior quarter while gross profit grew at a faster rate, causing gross margin to improve marginally. Compared to the same quarter last year, revenue rose notably and gross profit increased more than proportionally, leading to a stronger gross margin.
- Gross margin improved sequentially and year-over-year as gross profit grew faster than revenue in both comparisons. Cost of revenue increased at a slower pace than revenue in both periods, acting as the primary observable driver of margin expansion.
- Relative to the immediately preceding quarter, revenue was stable while gross profit rose, resulting in a slightly higher gross margin. Compared to the same quarter one year earlier, revenue was higher and gross profit increased at a greater rate, yielding an improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.1%
Gross profit
$844.0M
Revenue
$1.4B
Cost of revenue
$560.0M
Quarter-over-quarter change
+0.2 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 |
|---|---|---|---|---|
| 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% |
| Oct 3, 2025 | $1.4B | $844.0M | $560.0M | 60.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 4, 2025
+0.2 pts
Year-over-year change
Sep 27, 2024
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved sequentially and year-over-year as gross profit grew faster than revenue in both comparisons. Cost of revenue increased at a slower pace than revenue in both periods, acting as the primary observable driver of margin expansion.
Relative to the immediately preceding quarter, revenue was stable while gross profit rose, resulting in a slightly higher gross margin. Compared to the same quarter one year earlier, revenue was higher and gross profit increased at a greater rate, yielding an improved gross margin.
Monitor the relationship between cost of revenue growth and revenue growth, as the current favorable spread drove margin improvement.