The Coca-Cola Company stock research
FY2025 Q1
The Coca-Cola (KO) Gross Margin — Quarter Ended Mar 28, 2025
Revenue decreased compared to the prior quarter and the same quarter last year, while gross profit was lower than a year ago but slightly higher than the previous quarter. Cost of revenue declined from the prior quarter, and gross margin improved sequentially but remained nearly stable year over year.
Gross margin takeaway
Quarter ended Mar 28, 2025 · FY2025 Q1
Revenue decreased compared to the prior quarter and the same quarter last year, while gross profit was lower than a year ago but slightly higher than the previous quarter. Cost of revenue declined from the prior quarter, and gross margin improved sequentially but remained nearly stable year over year.
- The gross margin improved from the prior quarter, driven by a larger decline in cost of revenue relative to the decline in revenue. Compared to the same quarter last year, the margin was essentially unchanged.
- Revenue was lower than both the prior quarter and the year-ago quarter. Gross profit was slightly higher than the prior quarter but lower than the year-ago quarter, while cost of revenue was lower than the prior quarter and unchanged from the year-ago quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
62.6%
Gross profit
$7.0B
Revenue
$11.1B
Cost of revenue
$4.2B
Quarter-over-quarter change
+2.6 pts
Year-over-year change
+0.1 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 28, 2024 | $12.4B | $7.6B | $4.8B | 61.1% |
| Sep 27, 2024 | $11.9B | $7.2B | $4.7B | 60.7% |
| Dec 31, 2024 | $11.5B | $6.9B | $4.6B | 60.0% |
| Mar 28, 2025 | $11.1B | $7.0B | $4.2B | 62.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+2.6 pts
Year-over-year change
Mar 29, 2024
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved from the prior quarter, driven by a larger decline in cost of revenue relative to the decline in revenue. Compared to the same quarter last year, the margin was essentially unchanged.
Revenue was lower than both the prior quarter and the year-ago quarter. Gross profit was slightly higher than the prior quarter but lower than the year-ago quarter, while cost of revenue was lower than the prior quarter and unchanged from the year-ago quarter.
Monitor whether the cost of revenue remains stable or declines further, as it was the key factor in the sequential margin improvement.