CV

Chevron Corporation stock research

Mar 31, 2025

FY2025 Q1

Chevron (CVX) Gross Margin — Quarter Ended Mar 31, 2025

Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit also declined. Gross margin improved slightly from the prior quarter but weakened relative to the year-ago period, as the cost of revenue changed at a different rate than revenue.

Gross margin takeaway

Quarter ended Mar 31, 2025 · FY2025 Q1

Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit also declined. Gross margin improved slightly from the prior quarter but weakened relative to the year-ago period, as the cost of revenue changed at a different rate than revenue.

  • The strongest observable margin driver is the change in cost of revenue relative to revenue. Sequentially, cost of revenue fell more than revenue, supporting margin improvement; year over year, cost of revenue rose while revenue fell, compressing margins.
  • Compared to the immediately preceding quarter, gross margin improved slightly. Compared to the same quarter one year earlier, gross margin weakened.

Gross margin snapshot

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

Gross margin

37.9%

Gross profit

$17.5B

Revenue

$46.1B

Cost of revenue

$28.6B

Quarter-over-quarter change

+0.3 pts

Year-over-year change

-2.5 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$49.6B$18.7B$30.9B37.7%
Sep 30, 2024$48.9B$18.5B$30.4B37.8%
Dec 31, 2024$48.3B$18.2B$30.1B37.6%
Mar 31, 2025$46.1B$17.5B$28.6B37.9%

Quarterly comparisons

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

Previous-quarter change

Dec 31, 2024

+0.3 pts

Year-over-year change

Mar 31, 2024

-2.5 pts

What the margin says

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

The strongest observable margin driver is the change in cost of revenue relative to revenue. Sequentially, cost of revenue fell more than revenue, supporting margin improvement; year over year, cost of revenue rose while revenue fell, compressing margins.

Compared to the immediately preceding quarter, gross margin improved slightly. Compared to the same quarter one year earlier, gross margin weakened.

Monitor the trend in cash provided by operating activities, which declined in the first three months of 2025 compared to the year-ago period, as noted in the filing.