Dow Inc. stock research
FY2025 Q1
Dow (DOW) Gross Margin — Quarter Ended Mar 31, 2025
Revenue was unchanged from the prior quarter and lower than the year-ago quarter. Gross profit declined and gross margin weakened as cost of revenue rose compared to both periods.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue was unchanged from the prior quarter and lower than the year-ago quarter. Gross profit declined and gross margin weakened as cost of revenue rose compared to both periods.
- The strongest observable driver of the margin decline was the increase in cost of revenue, which was higher than both the prior quarter and the year-ago quarter while revenue was flat or lower.
- Compared to the prior quarter, revenue was unchanged but cost of revenue increased, leading to lower gross profit and a weaker gross margin. Compared to the same quarter last year, revenue was lower and cost of revenue was higher, resulting in a significantly lower gross profit and gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
6.4%
Gross profit
$671.0M
Revenue
$10.4B
Cost of revenue
$9.8B
Quarter-over-quarter change
-2.6 pts
Year-over-year change
-5.4 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 |
|---|---|---|---|---|
| Jun 30, 2024 | $10.9B | $1.3B | $9.6B | 12.1% |
| Sep 30, 2024 | $10.9B | $1.1B | $9.8B | 9.8% |
| Dec 31, 2024 | $10.4B | $935.0M | $9.5B | 9.0% |
| Mar 31, 2025 | $10.4B | $671.0M | $9.8B | 6.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-2.6 pts
Year-over-year change
Mar 31, 2024
-5.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the margin decline was the increase in cost of revenue, which was higher than both the prior quarter and the year-ago quarter while revenue was flat or lower.
Compared to the prior quarter, revenue was unchanged but cost of revenue increased, leading to lower gross profit and a weaker gross margin. Compared to the same quarter last year, revenue was lower and cost of revenue was higher, resulting in a significantly lower gross profit and gross margin.
Monitor the trajectory of cost of revenue, as it has increased while revenue remained flat.