Intuit Inc. stock research
FY2025 Q2
Intuit (INTU) Gross Margin — Quarter Ended Jan 31, 2025
Revenue and gross profit both increased compared with the prior quarter and the same quarter one year earlier. Gross margin improved relative to both periods.
Gross margin takeaway
Quarter ended Jan 31, 2025 · FY2025 Q2
Revenue and gross profit both increased compared with the prior quarter and the same quarter one year earlier. Gross margin improved relative to both periods.
- Cost of revenue grew at a slower rate than revenue, as it represented a smaller share of total revenue in the current quarter versus both the prior quarter and the year-ago quarter. This shift in the revenue composition supported the gross margin improvement.
- Revenue, gross profit, and gross margin all increased sequentially and year-over-year. Cost of revenue also increased, but at a slower pace relative to revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
76.4%
Gross profit
$3.0B
Revenue
$4.0B
Cost of revenue
$937.0M
Quarter-over-quarter change
+1.4 pts
Year-over-year change
+1.6 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 |
|---|---|---|---|---|
| Apr 30, 2024 | $6.7B | $5.7B | $1.1B | 84.2% |
| Jul 31, 2024 | $3.2B | $2.4B | $783.0M | 75.4% |
| Oct 31, 2024 | $3.3B | $2.5B | $823.0M | 74.9% |
| Jan 31, 2025 | $4.0B | $3.0B | $937.0M | 76.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 31, 2024
+1.4 pts
Year-over-year change
Jan 31, 2024
+1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Cost of revenue grew at a slower rate than revenue, as it represented a smaller share of total revenue in the current quarter versus both the prior quarter and the year-ago quarter. This shift in the revenue composition supported the gross margin improvement.
Revenue, gross profit, and gross margin all increased sequentially and year-over-year. Cost of revenue also increased, but at a slower pace relative to revenue.
Monitor whether the cost of revenue continues to grow at a slower rate than revenue, as any reversal could affect gross margin.