Johnson & Johnson stock research
FY2025 Q2
Johnson & Johnson (JNJ) Gross Margin — Quarter Ended Jun 29, 2025
Revenue and gross profit both increased, while cost of revenue rose by a smaller amount, leading to an improved gross margin compared to the prior quarter. However, relative to the same quarter last year, gross margin weakened as cost of revenue increased more than gross profit.
Gross margin takeaway
Quarter ended Jun 29, 2025 · FY2025 Q2
Revenue and gross profit both increased, while cost of revenue rose by a smaller amount, leading to an improved gross margin compared to the prior quarter. However, relative to the same quarter last year, gross margin weakened as cost of revenue increased more than gross profit.
- The sequential improvement in gross margin was accompanied by a larger increase in gross profit relative to the increase in cost of revenue.
- Compared to the immediately preceding quarter, gross margin improved as revenue and gross profit increased while cost of revenue rose less. Compared to the same quarter one year earlier, gross margin weakened because cost of revenue increased more than gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
67.9%
Gross profit
$16.1B
Revenue
$23.7B
Cost of revenue
$7.6B
Quarter-over-quarter change
+1.5 pts
Year-over-year change
-1.5 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 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% |
| Jun 29, 2025 | $23.7B | $16.1B | $7.6B | 67.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 30, 2025
+1.5 pts
Year-over-year change
Jun 30, 2024
-1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was accompanied by a larger increase in gross profit relative to the increase in cost of revenue.
Compared to the immediately preceding quarter, gross margin improved as revenue and gross profit increased while cost of revenue rose less. Compared to the same quarter one year earlier, gross margin weakened because cost of revenue increased more than gross profit.
Inventory levels increased from the end of the prior fiscal year to the end of the current quarter, a metric to monitor for potential impact on future cost of revenue.