CO

The Cooper Companies, Inc. stock research

Apr 30, 2025

FY2025 Q2

The Cooper Companies (COO) Gross Margin — Quarter Ended Apr 30, 2025

Revenue, cost of revenue, and gross profit all increased compared with the prior quarter and the same quarter last year. Despite gross profit growing at a slightly slower rate than revenue, gross margin remained relatively stable, narrowing only marginally from both comparison periods.

Gross margin takeaway

Quarter ended Apr 30, 2025 · FY2025 Q2

Revenue, cost of revenue, and gross profit all increased compared with the prior quarter and the same quarter last year. Despite gross profit growing at a slightly slower rate than revenue, gross margin remained relatively stable, narrowing only marginally from both comparison periods.

  • Revenue growth was the primary observable driver of gross profit expansion, as cost of revenue rose less rapidly than revenue both sequentially and year-over-year. This allowed gross profit to increase while gross margin held largely steady.
  • Sequentially, revenue increased while cost of revenue rose at a slightly faster pace, causing gross margin to edge lower. Compared with the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved modestly.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

67.8%

Gross profit

$679.1M

Revenue

$1.0B

Cost of revenue

$323.2M

Quarter-over-quarter change

-0.7 pts

Year-over-year change

+0.8 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jul 31, 2024$1.0B$663.0M$339.8M66.1%
Oct 31, 2024$1.0B$677.7M$340.7M66.5%
Jan 31, 2025$964.7M$660.2M$304.5M68.4%
Apr 30, 2025$1.0B$679.1M$323.2M67.8%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jan 31, 2025

-0.7 pts

Year-over-year change

Apr 30, 2024

+0.8 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

Revenue growth was the primary observable driver of gross profit expansion, as cost of revenue rose less rapidly than revenue both sequentially and year-over-year. This allowed gross profit to increase while gross margin held largely steady.

Sequentially, revenue increased while cost of revenue rose at a slightly faster pace, causing gross margin to edge lower. Compared with the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved modestly.

Monitor the relationship between revenue and cost of revenue growth rates, as a continued narrowing of the gap could pressure gross margin.