The Estée Lauder Companies Inc. stock research
FY2025 Q4
The Estée Lauder Companies (EL) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue was lower than a year ago but slightly higher than the prior quarter. Gross margin weakened sequentially but improved year-over-year, reflecting a mixed relationship among the metrics.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q4
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue was lower than a year ago but slightly higher than the prior quarter. Gross margin weakened sequentially but improved year-over-year, reflecting a mixed relationship among the metrics.
- The strongest observable margin driver is the year-over-year improvement in gross margin, which rose despite lower revenue, as cost of revenue declined more sharply. This indicates a favorable shift in the relationship between revenue and cost of revenue.
- Compared to the immediately preceding quarter, gross margin weakened as revenue and gross profit fell while cost of revenue increased. Compared to the same quarter one year earlier, gross margin improved as revenue and gross profit declined but cost of revenue decreased at a faster rate.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
72.0%
Gross profit
$2.5B
Revenue
$3.4B
Cost of revenue
$955.0M
Quarter-over-quarter change
-3.0 pts
Year-over-year change
+0.2 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 | $3.4B | $2.4B | $928.0M | 72.4% |
| Dec 31, 2024 | $4.0B | $3.0B | $957.0M | 76.1% |
| Mar 31, 2025 | $3.5B | $2.7B | $889.0M | 75.0% |
| Jun 30, 2025 | $3.4B | $2.5B | $955.0M | 72.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-3.0 pts
Year-over-year change
Jun 30, 2024
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the year-over-year improvement in gross margin, which rose despite lower revenue, as cost of revenue declined more sharply. This indicates a favorable shift in the relationship between revenue and cost of revenue.
Compared to the immediately preceding quarter, gross margin weakened as revenue and gross profit fell while cost of revenue increased. Compared to the same quarter one year earlier, gross margin improved as revenue and gross profit declined but cost of revenue decreased at a faster rate.
Monitor the sequential increase in cost of revenue relative to revenue, as it contributed to the weakening of gross margin from the prior quarter.