CT

Corteva, Inc. stock research

Jun 30, 2025

FY2025 Q2

Corteva (CTVA) Gross Margin — Quarter Ended Jun 30, 2025

Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue rose less than revenue on a sequential basis but was approximately stable year-over-year. Gross profit and gross margin both improved versus the preceding quarter and the year-ago period, reflecting a higher proportion of revenue retained after direct costs.

Gross margin takeaway

Quarter ended Jun 30, 2025 · FY2025 Q2

Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue rose less than revenue on a sequential basis but was approximately stable year-over-year. Gross profit and gross margin both improved versus the preceding quarter and the year-ago period, reflecting a higher proportion of revenue retained after direct costs.

  • The strongest observable margin driver for the current quarter is the gross profit level, which increased alongside revenue. The gross margin improvement compared to both prior periods indicates that revenue growth outpaced the increase in cost of revenue.
  • Sequentially, revenue, gross profit, and gross margin were all higher, while cost of revenue was lower in dollar terms, leading to a mixed shift in cost structure. Compared to the same quarter one year ago, revenue and gross profit were higher, cost of revenue was relatively stable, and gross margin improved.

Gross margin snapshot

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

Gross margin

54.6%

Gross profit

$3.5B

Revenue

$6.5B

Cost of revenue

$2.9B

Quarter-over-quarter change

+7.6 pts

Year-over-year change

+2.3 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2024$2.3B$761.0M$1.6B32.7%
Dec 31, 2024$4.0B$1.5B$2.5B37.3%
Mar 31, 2025$4.4B$2.1B$2.3B47.0%
Jun 30, 2025$6.5B$3.5B$2.9B54.6%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2025

+7.6 pts

Year-over-year change

Jun 30, 2024

+2.3 pts

What the margin says

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

The strongest observable margin driver for the current quarter is the gross profit level, which increased alongside revenue. The gross margin improvement compared to both prior periods indicates that revenue growth outpaced the increase in cost of revenue.

Sequentially, revenue, gross profit, and gross margin were all higher, while cost of revenue was lower in dollar terms, leading to a mixed shift in cost structure. Compared to the same quarter one year ago, revenue and gross profit were higher, cost of revenue was relatively stable, and gross margin improved.

Monitor whether the current quarter's gross margin improvement relative to both prior periods can be sustained, given the cost of revenue was higher sequentially but nearly unchanged year-over-year.