CO

ConocoPhillips stock research

Mar 31, 2025

FY2025 Q1

ConocoPhillips (COP) Gross Margin — Quarter Ended Mar 31, 2025

Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit also rose, while cost of revenue grew at a different pace, resulting in a gross margin that weakened relative to the prior quarter but improved compared to the same quarter last year.

Gross margin takeaway

Quarter ended Mar 31, 2025 · FY2025 Q1

Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit also rose, while cost of revenue grew at a different pace, resulting in a gross margin that weakened relative to the prior quarter but improved compared to the same quarter last year.

  • The strongest observable driver of the margin change is the differential growth between cost of revenue and revenue. Sequentially, cost of revenue increased more than revenue, compressing margin; year-over-year, revenue grew more than cost of revenue, expanding margin.
  • Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was higher.

Gross margin snapshot

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

Gross margin

57.3%

Gross profit

$8.3B

Revenue

$14.5B

Cost of revenue

$6.2B

Quarter-over-quarter change

-2.9 pts

Year-over-year change

+0.6 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2024$12.7B$7.8B$4.9B61.6%
Sep 30, 2024$11.7B$7.0B$4.7B59.4%
Dec 31, 2024$12.7B$7.7B$5.1B60.2%
Mar 31, 2025$14.5B$8.3B$6.2B57.3%

Quarterly comparisons

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

Previous-quarter change

Dec 31, 2024

-2.9 pts

Year-over-year change

Mar 31, 2024

+0.6 pts

What the margin says

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

The strongest observable driver of the margin change is the differential growth between cost of revenue and revenue. Sequentially, cost of revenue increased more than revenue, compressing margin; year-over-year, revenue grew more than cost of revenue, expanding margin.

Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was higher.

Monitor the trend in cost of revenue as a proportion of revenue, as it directly influences gross margin.