Johnson & Johnson stock research
FY2025 Q1
Johnson & Johnson (JNJ) Gross Margin — Quarter Ended Mar 30, 2025
Revenue decreased from the prior quarter but increased from the same quarter last year. Gross profit declined relative to both periods, as cost of revenue rose, resulting in a lower gross margin compared to both the preceding quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Mar 30, 2025 · FY2025 Q1
Revenue decreased from the prior quarter but increased from the same quarter last year. Gross profit declined relative to both periods, as cost of revenue rose, resulting in a lower gross margin compared to both the preceding quarter and the year-ago quarter.
- The strongest observable margin driver is the increase in cost of revenue, which was higher in both sequential and year-over-year comparisons, while revenue showed mixed movements.
- Compared to the immediately preceding quarter, revenue and gross profit were lower while cost of revenue was higher, leading to a weakened gross margin. Versus the same quarter one year earlier, revenue was higher but gross profit was lower, with cost of revenue higher, again resulting in a lower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
66.4%
Gross profit
$14.5B
Revenue
$21.9B
Cost of revenue
$7.4B
Quarter-over-quarter change
-2.0 pts
Year-over-year change
-3.2 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 |
|---|---|---|---|---|
| Jun 30, 2024 | $22.4B | $15.6B | $6.9B | 69.4% |
| Sep 29, 2024 | $22.5B | $15.5B | $7.0B | 69.0% |
| Dec 29, 2024 | $22.5B | $15.4B | $7.1B | 68.3% |
| Mar 30, 2025 | $21.9B | $14.5B | $7.4B | 66.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 29, 2024
-2.0 pts
Year-over-year change
Mar 31, 2024
-3.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in cost of revenue, which was higher in both sequential and year-over-year comparisons, while revenue showed mixed movements.
Compared to the immediately preceding quarter, revenue and gross profit were lower while cost of revenue was higher, leading to a weakened gross margin. Versus the same quarter one year earlier, revenue was higher but gross profit was lower, with cost of revenue higher, again resulting in a lower gross margin.
Monitor the trend of cost of revenue relative to revenue in upcoming quarters, as the filing notes risk factors that could affect future results.