Illinois Tool Works Inc. stock research
FY2025 Q2
Illinois Tool Works (ITW) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit increased from the prior quarter and the year ago period. Gross margin improved slightly, reflecting that revenue grew faster than cost of revenue.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue and gross profit increased from the prior quarter and the year ago period. Gross margin improved slightly, reflecting that revenue grew faster than cost of revenue.
- The gross margin improvement was driven by revenue growth that outpaced the increase in cost of revenue, comparing both sequentially and year over year.
- Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter last year, revenue was higher, gross profit was stable, and gross margin improved slightly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
52.8%
Gross profit
$2.1B
Revenue
$4.1B
Cost of revenue
$1.9B
Quarter-over-quarter change
+0.2 pts
Year-over-year change
+0.4 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 | $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% |
| Jun 30, 2025 | $4.1B | $2.1B | $1.9B | 52.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+0.2 pts
Year-over-year change
Jun 30, 2024
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by revenue growth that outpaced the increase in cost of revenue, comparing both sequentially and year over year.
Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter last year, revenue was higher, gross profit was stable, and gross margin improved slightly.
Monitor whether revenue growth continues to outpace cost of revenue in coming quarters.