Cummins Inc. stock research
FY2025 Q2
Cummins (CMI) Gross Margin — Quarter Ended Jun 30, 2025
In the current quarter, revenue and gross profit both increased compared to the previous quarter, while cost of revenue also increased, resulting in a stable gross margin. Compared to the same quarter a year earlier, revenue was lower, but gross profit was higher, and cost of revenue was lower, leading to an improved gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
In the current quarter, revenue and gross profit both increased compared to the previous quarter, while cost of revenue also increased, resulting in a stable gross margin. Compared to the same quarter a year earlier, revenue was lower, but gross profit was higher, and cost of revenue was lower, leading to an improved gross margin.
- The gross margin improvement year-over-year was driven by cost of revenue declining more than the decline in revenue, while sequentially the margin held steady.
- The gross margin was unchanged from the previous quarter but improved relative to the same quarter last year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
26.4%
Gross profit
$2.3B
Revenue
$8.6B
Cost of revenue
$6.4B
Quarter-over-quarter change
+0.0 pts
Year-over-year change
+1.5 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2025 | $8.6B | $2.3B | $6.4B | 26.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+0.0 pts
Year-over-year change
Jun 30, 2024
+1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement year-over-year was driven by cost of revenue declining more than the decline in revenue, while sequentially the margin held steady.
The gross margin was unchanged from the previous quarter but improved relative to the same quarter last year.
Monitor the trend in cost of revenue relative to revenue to assess whether the margin improvement can be sustained.