W.W. Grainger, Inc. stock research
FY2025 Q1
W.W. Grainger (GWW) Gross Margin — Quarter Ended Mar 31, 2025
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit remained stable. Gross margin improved slightly versus both periods, as cost of revenue grew at a slower pace than revenue.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit remained stable. Gross margin improved slightly versus both periods, as cost of revenue grew at a slower pace than revenue.
- The gross margin improvement was driven by revenue growth outpacing cost of revenue growth, leading to a higher margin percentage.
- Compared to the prior quarter, revenue was higher and gross margin improved slightly. Compared to the same quarter last year, revenue was higher and gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.7%
Gross profit
$1.7B
Revenue
$4.3B
Cost of revenue
$2.6B
Quarter-over-quarter change
+0.1 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 | $4.3B | $1.7B | $2.6B | 39.3% |
| Sep 30, 2024 | $4.4B | $1.7B | $2.7B | 39.2% |
| Dec 31, 2024 | $4.2B | $1.7B | $2.6B | 39.6% |
| Mar 31, 2025 | $4.3B | $1.7B | $2.6B | 39.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+0.1 pts
Year-over-year change
Mar 31, 2024
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by revenue growth outpacing cost of revenue growth, leading to a higher margin percentage.
Compared to the prior quarter, revenue was higher and gross margin improved slightly. Compared to the same quarter last year, revenue was higher and gross margin also improved.
Monitor the trend in cost of revenue relative to revenue, as any acceleration in cost growth could pressure gross margin.