Illinois Tool Works Inc. stock research
FY2025 Q1
Illinois Tool Works (ITW) Gross Margin — Quarter Ended Mar 31, 2025
Revenue decreased slightly while cost of revenue also decreased, resulting in a gross profit that is nearly stable and a gross margin that improved marginally.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue decreased slightly while cost of revenue also decreased, resulting in a gross profit that is nearly stable and a gross margin that improved marginally.
- Revenue declined compared to both the prior quarter and the same quarter last year, but cost of revenue fell at a slightly faster rate, supporting the gross margin improvement.
- Gross margin is higher than both the immediately preceding quarter and the same quarter one year earlier, while revenue is lower than both periods.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
52.6%
Gross profit
$2.0B
Revenue
$3.8B
Cost of revenue
$1.8B
Quarter-over-quarter change
+0.5 pts
Year-over-year change
+0.8 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 | $4.0B | $2.1B | $1.9B | 52.3% |
| Sep 30, 2024 | $4.0B | $2.1B | $1.9B | 52.5% |
| Dec 31, 2024 | $3.9B | $2.0B | $1.9B | 52.1% |
| Mar 31, 2025 | $3.8B | $2.0B | $1.8B | 52.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+0.5 pts
Year-over-year change
Mar 31, 2024
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Revenue declined compared to both the prior quarter and the same quarter last year, but cost of revenue fell at a slightly faster rate, supporting the gross margin improvement.
Gross margin is higher than both the immediately preceding quarter and the same quarter one year earlier, while revenue is lower than both periods.
The stability of gross profit relative to revenue trends should be monitored for any divergence.