Colgate-Palmolive Company stock research
FY2025 Q3
Colgate-Palmolive (CL) Gross Margin — Quarter Ended Sep 30, 2025
Revenue was stable compared to the prior quarter and higher than the same quarter last year. However, gross profit decreased and cost of revenue increased, resulting in a lower gross margin both sequentially and year-over-year.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue was stable compared to the prior quarter and higher than the same quarter last year. However, gross profit decreased and cost of revenue increased, resulting in a lower gross margin both sequentially and year-over-year.
- The increase in cost of revenue relative to revenue was the primary observable factor behind the margin decline. While revenue held steady sequentially and grew year-over-year, cost of revenue rose, compressing gross profit.
- Compared to the immediately preceding quarter, gross margin weakened as cost of revenue increased while revenue remained unchanged. Versus the same quarter one year earlier, gross margin also weakened, as revenue growth was more than offset by a larger increase in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.4%
Gross profit
$3.0B
Revenue
$5.1B
Cost of revenue
$2.1B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-1.7 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 | $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% |
| Sep 30, 2025 | $5.1B | $3.0B | $2.1B | 59.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-0.6 pts
Year-over-year change
Sep 30, 2024
-1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The increase in cost of revenue relative to revenue was the primary observable factor behind the margin decline. While revenue held steady sequentially and grew year-over-year, cost of revenue rose, compressing gross profit.
Compared to the immediately preceding quarter, gross margin weakened as cost of revenue increased while revenue remained unchanged. Versus the same quarter one year earlier, gross margin also weakened, as revenue growth was more than offset by a larger increase in cost of revenue.
Monitor the trend in cost of revenue relative to revenue, as the company's strategic emphasis on operational efficiencies will be critical to restoring gross margin.