Colgate-Palmolive Company stock research
FY2025 Q2
Colgate-Palmolive (CL) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit were stable compared to the same quarter last year, while cost of revenue was also unchanged. Gross margin weakened slightly from the prior quarter and was lower than the year-ago level.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue and gross profit were stable compared to the same quarter last year, while cost of revenue was also unchanged. Gross margin weakened slightly from the prior quarter and was lower than the year-ago level.
- The relationship between revenue and cost of revenue remained consistent year over year, with gross profit unchanged. The sequential decline in gross margin was driven by a proportionally higher cost of revenue relative to revenue in the current quarter.
- Compared to the prior quarter, revenue increased while cost of revenue rose at a faster pace, causing gross margin to weaken. Versus the same quarter last year, revenue and gross profit were flat, but gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.1%
Gross profit
$3.1B
Revenue
$5.1B
Cost of revenue
$2.0B
Quarter-over-quarter change
-0.8 pts
Year-over-year change
-0.6 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 |
|---|---|---|---|---|
| Sep 30, 2024 | $5.0B | $3.1B | $2.0B | 61.1% |
| Dec 31, 2024 | $4.9B | $3.0B | $2.0B | 60.3% |
| Mar 31, 2025 | $4.9B | $3.0B | $1.9B | 60.8% |
| Jun 30, 2025 | $5.1B | $3.1B | $2.0B | 60.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-0.8 pts
Year-over-year change
Jun 30, 2024
-0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue remained consistent year over year, with gross profit unchanged. The sequential decline in gross margin was driven by a proportionally higher cost of revenue relative to revenue in the current quarter.
Compared to the prior quarter, revenue increased while cost of revenue rose at a faster pace, causing gross margin to weaken. Versus the same quarter last year, revenue and gross profit were flat, but gross margin was slightly lower.
Monitor the trajectory of cost of revenue relative to revenue, as its faster sequential growth pressured gross margin.