Dow Inc. stock research
FY2025 Q3
Dow (DOW) Gross Margin — Quarter Ended Sep 30, 2025
In the current quarter, revenue decreased compared to both the prior quarter and the same quarter a year ago. Gross profit improved sequentially due to a larger decline in cost of revenue relative to revenue, but weakened year-over-year as cost of revenue fell less than revenue. Consequently, gross margin increased from the preceding quarter but remained lower than the year-ago period.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
In the current quarter, revenue decreased compared to both the prior quarter and the same quarter a year ago. Gross profit improved sequentially due to a larger decline in cost of revenue relative to revenue, but weakened year-over-year as cost of revenue fell less than revenue. Consequently, gross margin increased from the preceding quarter but remained lower than the year-ago period.
- The strongest observable driver of gross margin is the change in cost of revenue relative to revenue. Sequentially, cost of revenue declined more than revenue, expanding gross profit and margin; year-over-year, cost of revenue declined less than revenue, compressing margin.
- Compared to the immediately preceding quarter, gross margin improved. 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
7.3%
Gross profit
$731.0M
Revenue
$10.0B
Cost of revenue
$9.2B
Quarter-over-quarter change
+1.6 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.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $10.0B | $731.0M | $9.2B | 7.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+1.6 pts
Year-over-year change
Sep 30, 2024
-2.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of gross margin is the change in cost of revenue relative to revenue. Sequentially, cost of revenue declined more than revenue, expanding gross profit and margin; year-over-year, cost of revenue declined less than revenue, compressing margin.
Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Monitor the relative movement of cost of revenue versus revenue, as this relationship has been the primary factor driving gross margin changes.