Honeywell International Inc. stock research
FY2025 Q2
Honeywell International (HON) Gross Margin — Quarter Ended Jun 30, 2025
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose while cost of revenue also increased, resulting in a gross margin that weakened versus the preceding quarter but improved relative to the year-ago period.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose while cost of revenue also increased, resulting in a gross margin that weakened versus the preceding quarter but improved relative to the year-ago period.
- The strongest observable driver of the gross margin change is the relationship between revenue and cost of revenue: revenue growth outpaced cost growth compared to a year ago, supporting margin expansion, but cost grew faster than revenue sequentially, pressuring margins.
- Compared to the immediately preceding quarter, gross margin weakened as cost of revenue increased at a higher rate than revenue. Compared to the same quarter one year earlier, gross margin improved, with revenue growth exceeding cost growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.6%
Gross profit
$3.7B
Revenue
$11.2B
Cost of revenue
$6.3B
Quarter-over-quarter change
-6.2 pts
Year-over-year change
+0.7 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 | $10.5B | $3.4B | $5.9B | 31.8% |
| Sep 30, 2024 | $9.7B | $3.4B | $6.0B | 35.1% |
| Mar 31, 2025 | $8.9B | $3.5B | $5.5B | 38.8% |
| Jun 30, 2025 | $11.2B | $3.7B | $6.3B | 32.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-6.2 pts
Year-over-year change
Jun 30, 2024
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the gross margin change is the relationship between revenue and cost of revenue: revenue growth outpaced cost growth compared to a year ago, supporting margin expansion, but cost grew faster than revenue sequentially, pressuring margins.
Compared to the immediately preceding quarter, gross margin weakened as cost of revenue increased at a higher rate than revenue. Compared to the same quarter one year earlier, gross margin improved, with revenue growth exceeding cost growth.
Monitor whether the sequential cost growth trend moderates, as it directly influences future gross margin stability.