International Paper Company stock research
FY2025 Q3
International Paper (IP) Gross Margin — Quarter Ended Sep 30, 2025
Current quarter gross margin improved from a negative year-ago level but weakened substantially from the prior quarter. Revenue and gross profit both declined sequentially, while cost of revenue also fell but at a slower rate.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Current quarter gross margin improved from a negative year-ago level but weakened substantially from the prior quarter. Revenue and gross profit both declined sequentially, while cost of revenue also fell but at a slower rate.
- The strongest observable driver is the relationship between revenue and cost of revenue; cost of revenue decreased less than revenue, leading to a lower gross margin.
- Compared to the prior quarter, gross margin fell sharply as revenue declined more than cost of revenue. Compared to the same quarter last year, gross margin turned positive, driven by higher revenue and a shift from negative gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
13.6%
Gross profit
$673.0M
Revenue
$5.0B
Cost of revenue
$4.3B
Quarter-over-quarter change
-20.6 pts
Year-over-year change
+26.1 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 | $2.6B | -$320.0M | $2.9B | -12.5% |
| Mar 31, 2025 | $5.3B | $1.5B | $3.8B | 27.7% |
| Jun 30, 2025 | $7.4B | $2.5B | $4.9B | 34.1% |
| Sep 30, 2025 | $5.0B | $673.0M | $4.3B | 13.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-20.6 pts
Year-over-year change
Sep 30, 2024
+26.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the relationship between revenue and cost of revenue; cost of revenue decreased less than revenue, leading to a lower gross margin.
Compared to the prior quarter, gross margin fell sharply as revenue declined more than cost of revenue. Compared to the same quarter last year, gross margin turned positive, driven by higher revenue and a shift from negative gross profit.
Monitor the level of restructuring charges and transaction costs, as referenced in the filing, which may affect cost of revenue and reported margins.