International Flavors & Fragrances Inc. stock research
FY2025 Q2
International Flavors & Fragrances (IFF) Gross Margin — Quarter Ended Jun 30, 2025
Revenue remained stable compared to the prior quarter and declined versus the same quarter last year. Gross margin improved both sequentially and year-over-year, driven by a reduction in cost of revenue.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue remained stable compared to the prior quarter and declined versus the same quarter last year. Gross margin improved both sequentially and year-over-year, driven by a reduction in cost of revenue.
- The primary margin driver was a decrease in cost of revenue, which allowed gross margin to rise even as revenue fell year-over-year and held steady sequentially.
- Sequentially, revenue was flat while cost of revenue declined, lifting gross margin. Year-over-year, lower revenue was more than offset by a larger reduction in cost of revenue, resulting in a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.3%
Gross profit
$1.0B
Revenue
$2.8B
Cost of revenue
$1.7B
Quarter-over-quarter change
+0.9 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 | $2.9B | $1.1B | $1.8B | 37.0% |
| Sep 30, 2024 | $2.9B | $1.1B | $1.9B | 36.0% |
| Mar 31, 2025 | $2.8B | $1.0B | $1.8B | 36.4% |
| Jun 30, 2025 | $2.8B | $1.0B | $1.7B | 37.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+0.9 pts
Year-over-year change
Jun 30, 2024
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary margin driver was a decrease in cost of revenue, which allowed gross margin to rise even as revenue fell year-over-year and held steady sequentially.
Sequentially, revenue was flat while cost of revenue declined, lifting gross margin. Year-over-year, lower revenue was more than offset by a larger reduction in cost of revenue, resulting in a higher gross margin.
Monitor the trajectory of cost of revenue, as further reductions are key to sustaining margin improvement.