Johnson Controls International plc stock research
FY2025 Q3
Johnson Controls International (JCI) Gross Margin — Quarter Ended Jun 30, 2025
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue was slightly higher than the prior quarter but unchanged from a year ago. Gross profit rose, leading to an improved gross margin relative to both periods.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q3
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue was slightly higher than the prior quarter but unchanged from a year ago. Gross profit rose, leading to an improved gross margin relative to both periods.
- The improvement in gross margin was driven by revenue growth that outpaced the increase in cost of revenue, particularly compared to the year-ago quarter where cost of revenue remained stable while revenue rose.
- Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Versus the same quarter a year earlier, revenue and gross profit were also higher, with gross margin showing a stronger improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.1%
Gross profit
$2.2B
Revenue
$6.1B
Cost of revenue
$3.8B
Quarter-over-quarter change
+0.7 pts
Year-over-year change
+1.4 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 | $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% |
| Jun 30, 2025 | $6.1B | $2.2B | $3.8B | 37.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+0.7 pts
Year-over-year change
Jun 30, 2024
+1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was driven by revenue growth that outpaced the increase in cost of revenue, particularly compared to the year-ago quarter where cost of revenue remained stable while revenue rose.
Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Versus the same quarter a year earlier, revenue and gross profit were also higher, with gross margin showing a stronger improvement.
Monitor the trajectory of cost of revenue, as its stability relative to revenue has been key to margin expansion, and the filing notes seasonal inventory increases and accounts receivable growth related to the R&LC HVAC business that could affect future costs.