Johnson Controls International plc stock research
FY2025 Q4
Johnson Controls International (JCI) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both increased versus the previous quarter and the same quarter last year, while cost of revenue also rose in both comparisons. Gross margin weakened slightly from the prior quarter but improved compared to the year-ago period.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q4
Revenue and gross profit both increased versus the previous quarter and the same quarter last year, while cost of revenue also rose in both comparisons. Gross margin weakened slightly from the prior quarter but improved compared to the year-ago period.
- Gross profit grew more rapidly than revenue on a year-over-year basis, driving the gross margin improvement. The strongest observable margin driver is the relative growth in gross profit compared to cost of revenue.
- Compared to the prior quarter, gross margin was lower as revenue increased less proportionally than cost of revenue. Compared to the same quarter last year, gross margin was higher, with gross profit rising more than both revenue and cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.5%
Gross profit
$2.4B
Revenue
$6.4B
Cost of revenue
$4.1B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
+0.2 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $6.4B | $2.4B | $4.1B | 36.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-0.6 pts
Year-over-year change
Sep 30, 2024
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew more rapidly than revenue on a year-over-year basis, driving the gross margin improvement. The strongest observable margin driver is the relative growth in gross profit compared to cost of revenue.
Compared to the prior quarter, gross margin was lower as revenue increased less proportionally than cost of revenue. Compared to the same quarter last year, gross margin was higher, with gross profit rising more than both revenue and cost of revenue.
Monitor the trend in cost of revenue growth relative to revenue growth to assess whether the slight margin weakening from the prior quarter extends.