Eaton Corporation plc stock research
FY2025 Q3
Eaton (ETN) Gross Margin — Quarter Ended Sep 30, 2025
Revenue was stable compared to the previous quarter, while gross profit improved and cost of revenue declined, leading to a higher gross margin. Relative to the same quarter last year, revenue and gross profit both increased, but cost of revenue rose proportionally more, resulting in a slightly lower gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue was stable compared to the previous quarter, while gross profit improved and cost of revenue declined, leading to a higher gross margin. Relative to the same quarter last year, revenue and gross profit both increased, but cost of revenue rose proportionally more, resulting in a slightly lower gross margin.
- The improvement in gross margin from the prior quarter was primarily driven by a reduction in cost of revenue relative to revenue.
- Sequentially, the gross margin improved from the prior quarter. Year-over-year, the gross margin weakened slightly from the same quarter a year ago.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.3%
Gross profit
$2.7B
Revenue
$7.0B
Cost of revenue
$4.3B
Quarter-over-quarter change
+1.3 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $7.0B | $2.7B | $4.3B | 38.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+1.3 pts
Year-over-year change
Sep 30, 2024
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin from the prior quarter was primarily driven by a reduction in cost of revenue relative to revenue.
Sequentially, the gross margin improved from the prior quarter. Year-over-year, the gross margin weakened slightly from the same quarter a year ago.
Monitor the cost of revenue trend, as its movement relative to revenue directly influences gross margin direction.