ConocoPhillips stock research
FY2025 Q3
ConocoPhillips (COP) Gross Margin — Quarter Ended Sep 30, 2025
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was stable versus the prior quarter and higher year over year. Cost of revenue rose more than proportionally, causing gross margin to weaken relative to both comparison periods.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was stable versus the prior quarter and higher year over year. Cost of revenue rose more than proportionally, causing gross margin to weaken relative to both comparison periods.
- The strongest observable margin driver is the increase in cost of revenue, which outpaced revenue growth, leading to a lower gross margin. This is evident from the sequential and year-over-year comparisons.
- Compared to the immediately preceding quarter, gross margin weakened as revenue grew but cost of revenue increased at a faster rate. Versus the same quarter one year earlier, gross margin also weakened, with revenue and cost of revenue both higher but the latter rising more sharply.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
56.1%
Gross profit
$7.5B
Revenue
$13.3B
Cost of revenue
$5.9B
Quarter-over-quarter change
-3.6 pts
Year-over-year change
-3.4 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 | $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% |
| Sep 30, 2025 | $13.3B | $7.5B | $5.9B | 56.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-3.6 pts
Year-over-year change
Sep 30, 2024
-3.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in cost of revenue, which outpaced revenue growth, leading to a lower gross margin. This is evident from the sequential and year-over-year comparisons.
Compared to the immediately preceding quarter, gross margin weakened as revenue grew but cost of revenue increased at a faster rate. Versus the same quarter one year earlier, gross margin also weakened, with revenue and cost of revenue both higher but the latter rising more sharply.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth has compressed gross margin in both comparisons.