Emerson Electric Co. stock research
FY2025 Q3
Emerson Electric (EMR) Gross Margin — Quarter Ended Jun 30, 2025
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was stable sequentially and higher year-over-year. Cost of revenue also rose, leading to a gross margin that was slightly lower than both periods.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q3
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was stable sequentially and higher year-over-year. Cost of revenue also rose, leading to a gross margin that was slightly lower than both periods.
- The strongest observable margin driver is the increase in cost of revenue, which grew faster than revenue both sequentially and year-over-year, compressing gross margin.
- Compared to the immediately preceding quarter, revenue was higher, gross profit was stable, cost of revenue was higher, and gross margin was lower. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
52.6%
Gross profit
$2.4B
Revenue
$4.6B
Cost of revenue
$2.2B
Quarter-over-quarter change
-0.9 pts
Year-over-year change
-0.3 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 |
|---|---|---|---|---|
| Jun 30, 2024 | $4.4B | $2.3B | $2.1B | 52.8% |
| Dec 31, 2024 | $4.2B | $2.2B | $1.9B | 53.5% |
| Mar 31, 2025 | $4.4B | $2.4B | $2.1B | 53.5% |
| Jun 30, 2025 | $4.6B | $2.4B | $2.2B | 52.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-0.9 pts
Year-over-year change
Jun 30, 2024
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in cost of revenue, which grew faster than revenue both sequentially and year-over-year, compressing gross margin.
Compared to the immediately preceding quarter, revenue was higher, gross profit was stable, cost of revenue was higher, and gross margin was lower. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was slightly lower.
Monitor the integration of the recently acquired AspenTech operations and its impact on cost of revenue and gross margin trends.