Cummins Inc. stock research
FY2025 Q1
Cummins (CMI) Gross Margin — Quarter Ended Mar 31, 2025
Revenue decreased while cost of revenue decreased more sharply, causing gross profit to rise and gross margin to improve. Compared to both the preceding quarter and the same quarter a year earlier, gross margin was higher.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue decreased while cost of revenue decreased more sharply, causing gross profit to rise and gross margin to improve. Compared to both the preceding quarter and the same quarter a year earlier, gross margin was higher.
- Gross margin improvement was driven by the relationship between revenue and cost of revenue, where cost declined faster than revenue. The filing context notes no specific driver, so no external cause is inferred.
- Compared to the immediately preceding quarter, cost of revenue was lower while gross profit was higher, leading to an improved gross margin. Versus the same quarter one year earlier, revenue was lower yet gross profit was higher, also resulting in an improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
26.4%
Gross profit
$2.2B
Revenue
$8.2B
Cost of revenue
$6.0B
Quarter-over-quarter change
+2.3 pts
Year-over-year change
+2.1 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 |
|---|---|---|---|---|
| Jun 30, 2024 | $8.8B | $2.2B | $6.6B | 24.9% |
| Sep 30, 2024 | $8.5B | $2.2B | $6.3B | 25.7% |
| Dec 31, 2024 | $8.4B | $2.0B | $6.4B | 24.1% |
| Mar 31, 2025 | $8.2B | $2.2B | $6.0B | 26.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+2.3 pts
Year-over-year change
Mar 31, 2024
+2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improvement was driven by the relationship between revenue and cost of revenue, where cost declined faster than revenue. The filing context notes no specific driver, so no external cause is inferred.
Compared to the immediately preceding quarter, cost of revenue was lower while gross profit was higher, leading to an improved gross margin. Versus the same quarter one year earlier, revenue was lower yet gross profit was higher, also resulting in an improved gross margin.
Monitor the trend in cost of revenue relative to revenue to see if the favorable cost relationship persists.