Dow Inc. stock research
FY2025 Q2
Dow (DOW) Gross Margin — Quarter Ended Jun 30, 2025
Revenue, gross profit, cost of revenue, and gross margin all moved lower compared with both the immediately preceding quarter and the same quarter one year earlier. The decline in gross profit was proportionally larger than the decline in revenue, which caused gross margin to weaken.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue, gross profit, cost of revenue, and gross margin all moved lower compared with both the immediately preceding quarter and the same quarter one year earlier. The decline in gross profit was proportionally larger than the decline in revenue, which caused gross margin to weaken.
- The strongest observable margin driver was the change in cost of revenue relative to revenue: cost of revenue decreased at a slower pace than revenue, leading to a compressed gross margin.
- Compared with the preceding quarter, revenue was lower and gross profit was lower, with gross margin weakening. Compared with the same quarter one year earlier, revenue was lower, gross profit was significantly lower, and gross margin weakened notably.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
5.8%
Gross profit
$583.0M
Revenue
$10.1B
Cost of revenue
$9.5B
Quarter-over-quarter change
-0.7 pts
Year-over-year change
-6.4 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2025 | $10.1B | $583.0M | $9.5B | 5.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-0.7 pts
Year-over-year change
Jun 30, 2024
-6.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the change in cost of revenue relative to revenue: cost of revenue decreased at a slower pace than revenue, leading to a compressed gross margin.
Compared with the preceding quarter, revenue was lower and gross profit was lower, with gross margin weakening. Compared with the same quarter one year earlier, revenue was lower, gross profit was significantly lower, and gross margin weakened notably.
Monitor whether the relative movement between cost of revenue and revenue continues to pressure gross margin in upcoming periods.