Cummins Inc. stock research
FY2025 Q3
Cummins (CMI) Gross Margin — Quarter Ended Sep 30, 2025
Revenue declined compared to both the prior quarter and the same quarter last year, while gross profit and cost of revenue also decreased. The gross margin weakened slightly from the prior quarter and was marginally lower than the year-ago period, reflecting that the drop in revenue outpaced the reduction in cost of revenue.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue declined compared to both the prior quarter and the same quarter last year, while gross profit and cost of revenue also decreased. The gross margin weakened slightly from the prior quarter and was marginally lower than the year-ago period, reflecting that the drop in revenue outpaced the reduction in cost of revenue.
- The strongest observable driver of the gross margin change was the larger decline in revenue relative to cost of revenue. A concrete item to monitor is the comparative movement of revenue and cost of revenue in the coming quarter.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Versus the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was slightly lower, and gross margin was marginally weaker.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
25.6%
Gross profit
$2.1B
Revenue
$8.3B
Cost of revenue
$6.2B
Quarter-over-quarter change
-0.8 pts
Year-over-year change
-0.1 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $8.3B | $2.1B | $6.2B | 25.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-0.8 pts
Year-over-year change
Sep 30, 2024
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the gross margin change was the larger decline in revenue relative to cost of revenue. A concrete item to monitor is the comparative movement of revenue and cost of revenue in the coming quarter.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Versus the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was slightly lower, and gross margin was marginally weaker.
Monitor the quarterly change in revenue and cost of revenue to assess whether the margin trend continues.