Zoetis Inc. stock research
FY2025 Q1
Zoetis (ZTS) Gross Margin — Quarter Ended Mar 31, 2025
Revenue was slightly lower than the prior quarter but comparable to the same quarter last year. Gross profit remained stable, while cost of revenue decreased, leading to an improved gross margin compared to both the prior quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue was slightly lower than the prior quarter but comparable to the same quarter last year. Gross profit remained stable, while cost of revenue decreased, leading to an improved gross margin compared to both the prior quarter and the year-ago quarter.
- The reduction in cost of revenue relative to revenue was the strongest observable driver of the gross margin improvement.
- Gross margin improved compared to the immediately preceding quarter and the same quarter one year earlier. Revenue was slightly lower than the prior quarter but comparable to the year-ago period, while cost of revenue was lower in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
71.9%
Gross profit
$1.6B
Revenue
$2.2B
Cost of revenue
$618.0M
Quarter-over-quarter change
+2.4 pts
Year-over-year change
+1.2 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 | $2.4B | $1.7B | $668.0M | 71.7% |
| Sep 30, 2024 | $2.4B | $1.7B | $701.0M | 70.6% |
| Dec 31, 2024 | $2.3B | $1.6B | $707.0M | 69.5% |
| Mar 31, 2025 | $2.2B | $1.6B | $618.0M | 71.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+2.4 pts
Year-over-year change
Mar 31, 2024
+1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The reduction in cost of revenue relative to revenue was the strongest observable driver of the gross margin improvement.
Gross margin improved compared to the immediately preceding quarter and the same quarter one year earlier. Revenue was slightly lower than the prior quarter but comparable to the year-ago period, while cost of revenue was lower in both comparisons.
Monitor the trajectory of cost of revenue in future quarters to assess whether the current reduction is sustained.