Viatris Inc. stock research
FY2025 Q1
Viatris (VTRS) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and gross profit were lower than both the prior quarter and the year-ago quarter, while cost of revenue also decreased. Gross margin improved from the prior quarter but weakened compared to the year-ago quarter.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue and gross profit were lower than both the prior quarter and the year-ago quarter, while cost of revenue also decreased. Gross margin improved from the prior quarter but weakened compared to the year-ago quarter.
- The strongest observable margin driver is the relationship between cost of revenue and revenue. Cost of revenue declined less than revenue relative to the year-ago period, compressing the margin, while sequentially cost of revenue declined more than revenue, supporting margin improvement.
- Compared to the prior quarter, gross margin improved as cost of revenue decreased more than revenue. Compared to the year-ago quarter, gross margin weakened as the decline in revenue outpaced the reduction in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.8%
Gross profit
$1.2B
Revenue
$3.2B
Cost of revenue
$2.1B
Quarter-over-quarter change
+1.2 pts
Year-over-year change
-5.4 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 30, 2024 | $3.8B | $1.4B | $2.4B | 38.2% |
| Sep 30, 2024 | $3.7B | $1.5B | $2.3B | 39.0% |
| Dec 31, 2024 | $3.5B | $1.2B | $2.3B | 34.6% |
| Mar 31, 2025 | $3.2B | $1.2B | $2.1B | 35.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+1.2 pts
Year-over-year change
Mar 31, 2024
-5.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between cost of revenue and revenue. Cost of revenue declined less than revenue relative to the year-ago period, compressing the margin, while sequentially cost of revenue declined more than revenue, supporting margin improvement.
Compared to the prior quarter, gross margin improved as cost of revenue decreased more than revenue. Compared to the year-ago quarter, gross margin weakened as the decline in revenue outpaced the reduction in cost of revenue.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.