EM

Emerson Electric Co. stock research

Mar 31, 2025

FY2025 Q2

Emerson Electric (EMR) Gross Margin — Quarter Ended Mar 31, 2025

Revenue and gross profit both increased compared to the prior quarter, while gross margin remained stable. Relative to the same quarter last year, revenue was unchanged, but gross profit rose, leading to an improved gross margin.

Gross margin takeaway

Quarter ended Mar 31, 2025 · FY2025 Q2

Revenue and gross profit both increased compared to the prior quarter, while gross margin remained stable. Relative to the same quarter last year, revenue was unchanged, but gross profit rose, leading to an improved gross margin.

  • The year-over-year gross margin improvement is the most observable driver, as gross profit increased on the same revenue base compared to the prior year quarter.
  • Gross margin was stable compared to the previous quarter, with revenue and cost of revenue increasing proportionally. Compared to the same quarter one year earlier, gross margin improved, as gross profit increased while revenue was unchanged.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

53.5%

Gross profit

$2.4B

Revenue

$4.4B

Cost of revenue

$2.1B

Quarter-over-quarter change

-0.0 pts

Year-over-year change

+1.3 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2024$4.4B$2.3B$2.1B52.2%
Jun 30, 2024$4.4B$2.3B$2.1B52.8%
Dec 31, 2024$4.2B$2.2B$1.9B53.5%
Mar 31, 2025$4.4B$2.4B$2.1B53.5%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 31, 2024

-0.0 pts

Year-over-year change

Mar 31, 2024

+1.3 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The year-over-year gross margin improvement is the most observable driver, as gross profit increased on the same revenue base compared to the prior year quarter.

Gross margin was stable compared to the previous quarter, with revenue and cost of revenue increasing proportionally. Compared to the same quarter one year earlier, gross margin improved, as gross profit increased while revenue was unchanged.

Monitor the integration of the recently acquired AspenTech business into the Control Systems & Software segment, as noted in the filing, for its potential effect on gross margin trends.

EMR Gross Margin — Quarter Ended Mar 31, 2025