Ecolab Inc. stock research
FY2025 Q3
Ecolab (ECL) Gross Margin — Quarter Ended Sep 30, 2025
Revenue increased compared to both the preceding quarter and the same quarter one year earlier, while cost of revenue rose only modestly from the preceding quarter and was unchanged from the year-ago period. As a result, gross profit improved and gross margin held steady versus the prior quarter but strengthened compared to the same quarter last year.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue increased compared to both the preceding quarter and the same quarter one year earlier, while cost of revenue rose only modestly from the preceding quarter and was unchanged from the year-ago period. As a result, gross profit improved and gross margin held steady versus the prior quarter but strengthened compared to the same quarter last year.
- The strongest observable driver is the year-over-year improvement in gross margin, which resulted from higher revenue with no corresponding increase in cost of revenue. This relationship underpinned the margin expansion over the annual period.
- Compared to the preceding quarter, revenue and cost of revenue both increased, with gross profit rising and gross margin unchanged. Compared to the same quarter one year earlier, revenue increased while cost of revenue was flat, leading to higher gross profit and an improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.8%
Gross profit
$1.9B
Revenue
$4.2B
Cost of revenue
$2.3B
Quarter-over-quarter change
+0.0 pts
Year-over-year change
+1.4 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 | $4.0B | $1.7B | $2.3B | 43.4% |
| Mar 31, 2025 | $3.7B | $1.6B | $2.1B | 44.2% |
| Jun 30, 2025 | $4.0B | $1.8B | $2.2B | 44.8% |
| Sep 30, 2025 | $4.2B | $1.9B | $2.3B | 44.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+0.0 pts
Year-over-year change
Sep 30, 2024
+1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the year-over-year improvement in gross margin, which resulted from higher revenue with no corresponding increase in cost of revenue. This relationship underpinned the margin expansion over the annual period.
Compared to the preceding quarter, revenue and cost of revenue both increased, with gross profit rising and gross margin unchanged. Compared to the same quarter one year earlier, revenue increased while cost of revenue was flat, leading to higher gross profit and an improved gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as the sequential quarter showed a cost increase while the year-over-year comparison reflected stable costs.