Johnson & Johnson stock research
FY2025 Q3
Johnson & Johnson (JNJ) Gross Margin — Quarter Ended Sep 28, 2025
Revenue increased and cost of revenue decreased compared to the prior quarter, leading to a higher gross profit and an improved gross margin. Versus the same quarter last year, revenue and gross profit both rose, with gross margin slightly higher as cost of revenue increased at a slower pace.
Gross margin takeaway
Quarter ended Sep 28, 2025 · FY2025 Q3
Revenue increased and cost of revenue decreased compared to the prior quarter, leading to a higher gross profit and an improved gross margin. Versus the same quarter last year, revenue and gross profit both rose, with gross margin slightly higher as cost of revenue increased at a slower pace.
- The sequential decline in cost of revenue combined with revenue growth was the most observable driver of the gross margin improvement.
- Sequentially, gross margin improved as cost of revenue fell while revenue rose. Year-over-year, gross margin also improved slightly, with revenue and gross profit growing faster than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
69.6%
Gross profit
$16.7B
Revenue
$24.0B
Cost of revenue
$7.3B
Quarter-over-quarter change
+1.7 pts
Year-over-year change
+0.5 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 |
|---|---|---|---|---|
| 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% |
| Sep 28, 2025 | $24.0B | $16.7B | $7.3B | 69.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 29, 2025
+1.7 pts
Year-over-year change
Sep 29, 2024
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential decline in cost of revenue combined with revenue growth was the most observable driver of the gross margin improvement.
Sequentially, gross margin improved as cost of revenue fell while revenue rose. Year-over-year, gross margin also improved slightly, with revenue and gross profit growing faster than cost of revenue.
Monitor the trajectory of cost of revenue, given its sequential decrease but year-over-year increase.