Eaton Corporation plc stock research
FY2025 Q1
Eaton (ETN) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and cost of revenue both increased, resulting in a gross profit that was flat sequentially but higher year-over-year. Gross margin weakened from the prior quarter but improved compared to the same quarter last year.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue and cost of revenue both increased, resulting in a gross profit that was flat sequentially but higher year-over-year. Gross margin weakened from the prior quarter but improved compared to the same quarter last year.
- The sequential margin decrease occurred as cost of revenue rose more than revenue; the year-over-year margin increase occurred as revenue rose more than cost of revenue.
- Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.4%
Gross profit
$2.4B
Revenue
$6.4B
Cost of revenue
$3.9B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
+1.1 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 | $6.3B | $2.4B | $3.9B | 38.0% |
| Sep 30, 2024 | $6.3B | $2.4B | $3.9B | 38.6% |
| Dec 31, 2024 | $6.2B | $2.4B | $3.8B | 38.9% |
| Mar 31, 2025 | $6.4B | $2.4B | $3.9B | 38.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-0.6 pts
Year-over-year change
Mar 31, 2024
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential margin decrease occurred as cost of revenue rose more than revenue; the year-over-year margin increase occurred as revenue rose more than cost of revenue.
Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was higher.
Monitor the relationship between revenue growth and cost of revenue growth, as sequential cost growth exceeded revenue growth.