Johnson & Johnson stock research
FY2025 Q4
Johnson & Johnson (JNJ) Gross Margin — Quarter Ended Dec 28, 2025
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was slightly lower than the prior quarter but higher than a year ago. The company's filing notes its operations are organized into Innovative Medicine and MedTech segments, and gross margin weakened compared to both prior periods.
Gross margin takeaway
Quarter ended Dec 28, 2025 · FY2025 Q4
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was slightly lower than the prior quarter but higher than a year ago. The company's filing notes its operations are organized into Innovative Medicine and MedTech segments, and gross margin weakened compared to both prior periods.
- The primary observable factor in the margin change is that cost of revenue increased at a faster pace than revenue when comparing to the prior quarter, and also increased relative to revenue compared to the year-ago period.
- Sequentially, revenue rose while gross profit edged lower, leading to a lower gross margin. Year-over-year, both revenue and gross profit increased, but cost of revenue grew more, resulting in a lower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
67.6%
Gross profit
$16.6B
Revenue
$24.6B
Cost of revenue
$8.0B
Quarter-over-quarter change
-2.0 pts
Year-over-year change
-0.8 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 |
|---|---|---|---|---|
| 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% |
| Dec 28, 2025 | $24.6B | $16.6B | $8.0B | 67.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 28, 2025
-2.0 pts
Year-over-year change
Dec 29, 2024
-0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable factor in the margin change is that cost of revenue increased at a faster pace than revenue when comparing to the prior quarter, and also increased relative to revenue compared to the year-ago period.
Sequentially, revenue rose while gross profit edged lower, leading to a lower gross margin. Year-over-year, both revenue and gross profit increased, but cost of revenue grew more, resulting in a lower gross margin.
Monitor the trend in cost of revenue relative to revenue in upcoming quarters.