Air Products and Chemicals, Inc. stock research
FY2025 Q3
Air Products and Chemicals (APD) Gross Margin — Quarter Ended Jun 30, 2025
For the quarter ended June 30, 2025, revenue and cost of revenue both increased, with gross profit rising at a faster pace, resulting in a higher gross margin compared to the prior quarter. The gross margin weakened slightly versus the same quarter a year earlier, as revenue held relatively stable while cost of revenue increased moderately.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q3
For the quarter ended June 30, 2025, revenue and cost of revenue both increased, with gross profit rising at a faster pace, resulting in a higher gross margin compared to the prior quarter. The gross margin weakened slightly versus the same quarter a year earlier, as revenue held relatively stable while cost of revenue increased moderately.
- The strongest observable margin driver was the improvement in gross profit relative to revenue growth, as gross profit increased more sharply than revenue from the previous quarter. Revenue remained stable year-over-year, but cost of revenue grew, compressing the margin.
- Compared to the immediately preceding quarter, the gross margin improved from a lower level to a higher level, driven by a larger increase in gross profit relative to revenue. Versus the same quarter a year earlier, the gross margin weakened slightly, as revenue was stable while cost of revenue was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.5%
Gross profit
$982.6M
Revenue
$3.0B
Cost of revenue
$2.0B
Quarter-over-quarter change
+2.9 pts
Year-over-year change
-0.3 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 |
|---|---|---|---|---|
| Sep 30, 2024 | $3.2B | $1.1B | $2.1B | 34.0% |
| Dec 31, 2024 | $2.9B | $915.0M | $2.0B | 31.2% |
| Mar 31, 2025 | $2.9B | $862.3M | $2.1B | 29.6% |
| Jun 30, 2025 | $3.0B | $982.6M | $2.0B | 32.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+2.9 pts
Year-over-year change
Jun 30, 2024
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the improvement in gross profit relative to revenue growth, as gross profit increased more sharply than revenue from the previous quarter. Revenue remained stable year-over-year, but cost of revenue grew, compressing the margin.
Compared to the immediately preceding quarter, the gross margin improved from a lower level to a higher level, driven by a larger increase in gross profit relative to revenue. Versus the same quarter a year earlier, the gross margin weakened slightly, as revenue was stable while cost of revenue was higher.
Monitor whether cost of revenue growth continues to outpace revenue growth in upcoming quarters, which would further pressure gross margin.