West Pharmaceutical Services, Inc. stock research
FY2025 Q1
West Pharmaceutical Services (WST) Gross Margin — Quarter Ended Mar 31, 2025
Revenue decreased from the prior quarter while cost of revenue declined less, resulting in lower gross profit and a weakened gross margin. Compared to the same quarter last year, revenue and gross profit were slightly higher, and gross margin remained stable.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue decreased from the prior quarter while cost of revenue declined less, resulting in lower gross profit and a weakened gross margin. Compared to the same quarter last year, revenue and gross profit were slightly higher, and gross margin remained stable.
- The sequential gross margin decline was associated with a larger decrease in revenue relative to cost of revenue, as cost of revenue did not fall as much as revenue.
- Compared to the immediately preceding quarter, gross margin weakened. Compared to the same quarter one year earlier, gross margin was essentially unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.2%
Gross profit
$231.9M
Revenue
$698.0M
Cost of revenue
$466.1M
Quarter-over-quarter change
-3.3 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 |
|---|---|---|---|---|
| Jun 30, 2024 | $702.1M | $230.0M | $472.1M | 32.8% |
| Sep 30, 2024 | $746.9M | $264.7M | $482.2M | 35.4% |
| Dec 31, 2024 | $748.8M | $273.6M | $475.2M | 36.5% |
| Mar 31, 2025 | $698.0M | $231.9M | $466.1M | 33.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-3.3 pts
Year-over-year change
Mar 31, 2024
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential gross margin decline was associated with a larger decrease in revenue relative to cost of revenue, as cost of revenue did not fall as much as revenue.
Compared to the immediately preceding quarter, gross margin weakened. Compared to the same quarter one year earlier, gross margin was essentially unchanged.
Monitor the relationship between revenue and cost of revenue in upcoming quarters, as the sequential gross margin decline reflected a smaller reduction in cost of revenue relative to revenue.