The Boeing Company stock research
FY2025 Q3
The Boeing (BA) Gross Margin — Quarter Ended Sep 30, 2025
Revenue was higher than the prior quarter, yet the gross profit turned negative as cost of revenue rose more than revenue. Compared with the same quarter one year earlier, the gross margin improved meaningfully from a deeply negative level, though it remained negative.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue was higher than the prior quarter, yet the gross profit turned negative as cost of revenue rose more than revenue. Compared with the same quarter one year earlier, the gross margin improved meaningfully from a deeply negative level, though it remained negative.
- The primary observable driver was the shift in the relationship between revenue and cost of revenue, which caused gross profit to change from positive in the preceding quarter to negative in the current quarter.
- Compared with the preceding quarter, revenue improved but cost of revenue grew at a faster rate, resulting in a weaker gross margin. Versus the year-ago quarter, all three metrics—revenue, gross profit, and gross margin—were higher or improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
-10.2%
Gross profit
-$2.4B
Revenue
$23.3B
Cost of revenue
$25.6B
Quarter-over-quarter change
-20.9 pts
Year-over-year change
+9.5 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 | $15.2B | -$1.6B | $16.8B | -10.4% |
| Mar 31, 2025 | $19.5B | $2.4B | $17.1B | 12.4% |
| Jun 30, 2025 | $22.7B | $2.4B | $20.3B | 10.7% |
| Sep 30, 2025 | $23.3B | -$2.4B | $25.6B | -10.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-20.9 pts
Year-over-year change
Sep 30, 2024
+9.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver was the shift in the relationship between revenue and cost of revenue, which caused gross profit to change from positive in the preceding quarter to negative in the current quarter.
Compared with the preceding quarter, revenue improved but cost of revenue grew at a faster rate, resulting in a weaker gross margin. Versus the year-ago quarter, all three metrics—revenue, gross profit, and gross margin—were higher or improved.
Monitor whether cost of revenue continues to outpace revenue growth, as this pattern directly pressures gross margin.