Johnson Controls International plc stock research
FY2025 Q2
Johnson Controls International (JCI) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was lower than a year ago but slightly higher than the preceding quarter. Gross margin improved sequentially and year-over-year, reflecting a stronger relationship between revenue growth and cost management.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was lower than a year ago but slightly higher than the preceding quarter. Gross margin improved sequentially and year-over-year, reflecting a stronger relationship between revenue growth and cost management.
- The strongest observable margin driver is the year-over-year decline in cost of revenue combined with revenue growth, which directly lifted gross profit and margin. This contrasts with the prior quarter where cost of revenue rose less than revenue, also supporting margin expansion.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was slightly higher. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.5%
Gross profit
$2.1B
Revenue
$5.7B
Cost of revenue
$3.6B
Quarter-over-quarter change
+1.0 pts
Year-over-year change
+2.1 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 |
|---|---|---|---|---|
| Jun 30, 2024 | $5.9B | $2.1B | $3.8B | 35.8% |
| Sep 30, 2024 | $6.2B | $2.3B | $4.0B | 36.3% |
| Dec 31, 2024 | $5.4B | $1.9B | $3.5B | 35.5% |
| Mar 31, 2025 | $5.7B | $2.1B | $3.6B | 36.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+1.0 pts
Year-over-year change
Mar 31, 2024
+2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the year-over-year decline in cost of revenue combined with revenue growth, which directly lifted gross profit and margin. This contrasts with the prior quarter where cost of revenue rose less than revenue, also supporting margin expansion.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was slightly higher. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.
Monitor the trajectory of cost of revenue relative to revenue, as its year-over-year decline was a key factor in margin improvement.