Eaton Corporation plc stock research
FY2025 Q2
Eaton (ETN) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit both increased for the current quarter, while cost of revenue also rose. The gross margin weakened compared to both the immediately preceding quarter and the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue and gross profit both increased for the current quarter, while cost of revenue also rose. The gross margin weakened compared to both the immediately preceding quarter and the same quarter one year earlier.
- The change in gross margin was primarily linked to the relationship between revenue growth and the increase in cost of revenue. No single driver is identifiable from the supplied data.
- Compared to the prior quarter, revenue and gross profit were higher, but gross margin was lower. Against the same quarter last year, revenue and gross profit were higher, while gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.0%
Gross profit
$2.6B
Revenue
$7.0B
Cost of revenue
$4.4B
Quarter-over-quarter change
-1.4 pts
Year-over-year change
-1.0 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 | $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% |
| Jun 30, 2025 | $7.0B | $2.6B | $4.4B | 37.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-1.4 pts
Year-over-year change
Jun 30, 2024
-1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The change in gross margin was primarily linked to the relationship between revenue growth and the increase in cost of revenue. No single driver is identifiable from the supplied data.
Compared to the prior quarter, revenue and gross profit were higher, but gross margin was lower. Against the same quarter last year, revenue and gross profit were higher, while gross margin was lower.
Monitor the future trend of gross margin relative to revenue growth to assess whether cost pressures persist.