Zimmer Biomet Holdings, Inc. stock research
FY2025 Q3
Zimmer Biomet Holdings (ZBH) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both decreased from the prior quarter but increased compared to the same quarter last year. Gross margin improved versus both the preceding quarter and the year-ago period, as cost of revenue declined relative to revenue.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue and gross profit both decreased from the prior quarter but increased compared to the same quarter last year. Gross margin improved versus both the preceding quarter and the year-ago period, as cost of revenue declined relative to revenue.
- Gross margin strengthened sequentially and year-over-year, driven by a proportionally larger decline in cost of revenue relative to the change in revenue.
- Compared to the prior quarter, revenue and gross profit were lower, while gross margin was higher. Compared to the same quarter last year, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
72.1%
Gross profit
$1.4B
Revenue
$2.0B
Cost of revenue
$559.3M
Quarter-over-quarter change
+0.6 pts
Year-over-year change
+1.6 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 | $2.0B | $1.4B | $586.7M | 71.0% |
| Mar 31, 2025 | $1.9B | $1.4B | $549.8M | 71.2% |
| Jun 30, 2025 | $2.1B | $1.5B | $592.2M | 71.5% |
| Sep 30, 2025 | $2.0B | $1.4B | $559.3M | 72.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+0.6 pts
Year-over-year change
Sep 30, 2024
+1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin strengthened sequentially and year-over-year, driven by a proportionally larger decline in cost of revenue relative to the change in revenue.
Compared to the prior quarter, revenue and gross profit were lower, while gross margin was higher. Compared to the same quarter last year, revenue, gross profit, and gross margin were all higher.
Monitor the trend in cost of revenue relative to revenue, as its decline was the primary observable factor in margin improvement.