Zimmer Biomet Holdings, Inc. stock research
FY2025 Q1
Zimmer Biomet Holdings (ZBH) Gross Margin — Quarter Ended Mar 31, 2025
Revenue decreased from the prior quarter while gross profit held steady, leading to a slight improvement in gross margin. Compared to the same quarter a year earlier, revenue was similar but cost of revenue was higher, causing gross margin to weaken.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue decreased from the prior quarter while gross profit held steady, leading to a slight improvement in gross margin. Compared to the same quarter a year earlier, revenue was similar but cost of revenue was higher, causing gross margin to weaken.
- The change in cost of revenue relative to revenue was the most observable driver. Cost of revenue declined from the prior quarter at a pace that outpaced the revenue decline, supporting a slightly higher gross margin.
- Gross margin improved modestly compared to the immediately preceding quarter, but was weaker relative to the same quarter one year earlier. Revenue was lower than the prior quarter and similar to the year-ago period.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
71.2%
Gross profit
$1.4B
Revenue
$1.9B
Cost of revenue
$549.8M
Quarter-over-quarter change
+0.2 pts
Year-over-year change
-1.7 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 | $1.9B | $1.4B | $553.6M | 71.5% |
| Sep 30, 2024 | $1.8B | $1.3B | $538.6M | 70.5% |
| Dec 31, 2024 | $2.0B | $1.4B | $586.7M | 71.0% |
| Mar 31, 2025 | $1.9B | $1.4B | $549.8M | 71.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+0.2 pts
Year-over-year change
Mar 31, 2024
-1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The change in cost of revenue relative to revenue was the most observable driver. Cost of revenue declined from the prior quarter at a pace that outpaced the revenue decline, supporting a slightly higher gross margin.
Gross margin improved modestly compared to the immediately preceding quarter, but was weaker relative to the same quarter one year earlier. Revenue was lower than the prior quarter and similar to the year-ago period.
Monitor the trend in cost of products sold, as it directly influences gross margin and has shown variability between periods.