ConocoPhillips stock research
FY2025 Q2
ConocoPhillips (COP) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit both declined from the prior quarter, but cost of revenue fell at a faster pace, resulting in an improved gross margin. Compared to the same quarter a year earlier, revenue was slightly lower while cost of revenue increased, leading to a lower gross profit and a weakened gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue and gross profit both declined from the prior quarter, but cost of revenue fell at a faster pace, resulting in an improved gross margin. Compared to the same quarter a year earlier, revenue was slightly lower while cost of revenue increased, leading to a lower gross profit and a weakened gross margin.
- The most observable margin driver is the change in cost of revenue relative to revenue. The ratio of cost to revenue improved sequentially but worsened compared to the prior year.
- Gross margin improved from the previous quarter, rising as revenue declined less proportionally than cost of revenue. However, compared to the same quarter last year, gross margin weakened because cost of revenue increased while revenue was nearly flat.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.7%
Gross profit
$7.5B
Revenue
$12.6B
Cost of revenue
$5.1B
Quarter-over-quarter change
+2.4 pts
Year-over-year change
-1.9 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 | $11.7B | $7.0B | $4.7B | 59.4% |
| Dec 31, 2024 | $12.7B | $7.7B | $5.1B | 60.2% |
| Mar 31, 2025 | $14.5B | $8.3B | $6.2B | 57.3% |
| Jun 30, 2025 | $12.6B | $7.5B | $5.1B | 59.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+2.4 pts
Year-over-year change
Jun 30, 2024
-1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver is the change in cost of revenue relative to revenue. The ratio of cost to revenue improved sequentially but worsened compared to the prior year.
Gross margin improved from the previous quarter, rising as revenue declined less proportionally than cost of revenue. However, compared to the same quarter last year, gross margin weakened because cost of revenue increased while revenue was nearly flat.
Monitor the trend of cost of revenue relative to revenue, as shifts in this ratio directly affect gross margin direction.