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Archer-Daniels-Midland Company stock research

Sep 30, 2025

FY2025 Q3

Archer-Daniels-Midland (ADM) Gross Margin — Quarter Ended Sep 30, 2025

Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was lower than both periods. Cost of revenue rose relative to the year-ago quarter, and gross margin weakened sequentially and year-over-year.

Gross margin takeaway

Quarter ended Sep 30, 2025 · FY2025 Q3

Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was lower than both periods. Cost of revenue rose relative to the year-ago quarter, and gross margin weakened sequentially and year-over-year.

  • Gross margin declined from the prior quarter and the year-ago quarter, driven by a larger increase in cost of revenue relative to revenue growth. The relationship between revenue and cost of revenue was the primary observable factor.
  • Compared to the immediately preceding quarter, revenue was higher but gross profit was lower, resulting in a weakened gross margin. Versus the same quarter one year earlier, revenue was higher while gross profit was lower, leading to a weaker gross margin.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

19.8%

Gross profit

$1.3B

Revenue

$6.4B

Cost of revenue

$19.1B

Quarter-over-quarter change

-1.8 pts

Year-over-year change

-3.0 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2024$6.3B$1.4B$20.1B21.6%
Mar 31, 2025$6.1B$1.2B$19.0B19.2%
Jun 30, 2025$6.3B$1.4B$19.8B21.6%
Sep 30, 2025$6.4B$1.3B$19.1B19.8%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2025

-1.8 pts

Year-over-year change

Sep 30, 2024

-3.0 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

Gross margin declined from the prior quarter and the year-ago quarter, driven by a larger increase in cost of revenue relative to revenue growth. The relationship between revenue and cost of revenue was the primary observable factor.

Compared to the immediately preceding quarter, revenue was higher but gross profit was lower, resulting in a weakened gross margin. Versus the same quarter one year earlier, revenue was higher while gross profit was lower, leading to a weaker gross margin.

Monitor the trajectory of cost of revenue relative to revenue, as its increase outpaced revenue growth in the current quarter.