Kimberly-Clark Corporation stock research
FY2025 Q2
Kimberly-Clark (KMB) Gross Margin — Quarter Ended Jun 30, 2025
Revenue was stable compared to the same quarter last year and slightly higher than the prior quarter. Gross profit was lower than a year ago but unchanged from the prior quarter, while cost of revenue was higher both sequentially and year-over-year, resulting in a gross margin that weakened against both periods.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue was stable compared to the same quarter last year and slightly higher than the prior quarter. Gross profit was lower than a year ago but unchanged from the prior quarter, while cost of revenue was higher both sequentially and year-over-year, resulting in a gross margin that weakened against both periods.
- The gross margin decline was driven by cost of revenue increasing at a faster pace than revenue, as revenue remained relatively flat while cost of revenue rose both sequentially and year-over-year.
- Compared to the prior quarter, gross margin weakened as revenue increased modestly but cost of revenue rose more sharply. Versus the same quarter last year, gross margin also weakened, with revenue unchanged and cost of revenue higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.0%
Gross profit
$1.5B
Revenue
$4.2B
Cost of revenue
$2.7B
Quarter-over-quarter change
-2.2 pts
Year-over-year change
-2.7 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 | $4.2B | $1.6B | $2.6B | 37.7% |
| Sep 30, 2024 | $4.1B | $1.6B | $2.6B | 37.7% |
| Mar 31, 2025 | $4.1B | $1.5B | $2.5B | 37.2% |
| Jun 30, 2025 | $4.2B | $1.5B | $2.7B | 35.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-2.2 pts
Year-over-year change
Jun 30, 2024
-2.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin decline was driven by cost of revenue increasing at a faster pace than revenue, as revenue remained relatively flat while cost of revenue rose both sequentially and year-over-year.
Compared to the prior quarter, gross margin weakened as revenue increased modestly but cost of revenue rose more sharply. Versus the same quarter last year, gross margin also weakened, with revenue unchanged and cost of revenue higher.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth has been the primary factor behind the margin compression.