Honeywell International Inc. stock research
FY2025 Q3
Honeywell International (HON) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both declined from the previous quarter, while cost of revenue increased, resulting in a weaker gross margin. Compared with the same quarter last year, revenue was higher but gross profit was lower, and gross margin worsened further.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue and gross profit both declined from the previous quarter, while cost of revenue increased, resulting in a weaker gross margin. Compared with the same quarter last year, revenue was higher but gross profit was lower, and gross margin worsened further.
- The most observable margin driver was the rising proportion of cost of revenue relative to revenue, as both sequential and year-over-year comparisons showed a higher share of revenue consumed by costs.
- Sequentially, revenue was lower and cost of revenue was higher, leading to lower gross profit and gross margin. Year-over-year, revenue was higher but cost of revenue increased more, resulting in lower gross profit and gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.1%
Gross profit
$3.2B
Revenue
$10.4B
Cost of revenue
$6.9B
Quarter-over-quarter change
-1.5 pts
Year-over-year change
-4.1 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $10.4B | $3.2B | $6.9B | 31.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-1.5 pts
Year-over-year change
Sep 30, 2024
-4.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver was the rising proportion of cost of revenue relative to revenue, as both sequential and year-over-year comparisons showed a higher share of revenue consumed by costs.
Sequentially, revenue was lower and cost of revenue was higher, leading to lower gross profit and gross margin. Year-over-year, revenue was higher but cost of revenue increased more, resulting in lower gross profit and gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as it has been the primary factor in margin compression.