KO

The Coca-Cola Company stock research

Sep 26, 2025

FY2025 Q3

The Coca-Cola (KO) Gross Margin — Quarter Ended Sep 26, 2025

Revenue was unchanged from the prior quarter, while gross profit and gross margin both declined. Compared to the same quarter last year, revenue, gross profit, and gross margin all improved.

Gross margin takeaway

Quarter ended Sep 26, 2025 · FY2025 Q3

Revenue was unchanged from the prior quarter, while gross profit and gross margin both declined. Compared to the same quarter last year, revenue, gross profit, and gross margin all improved.

  • Gross margin weakened sequentially as cost of revenue rose while revenue held steady. The year-over-year improvement in gross margin was supported by a larger increase in gross profit relative to revenue.
  • Compared to the prior quarter, gross margin was lower, driven by higher cost of revenue against flat revenue. Versus the same quarter a year ago, gross margin was higher, with gross profit growing faster than revenue.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

61.5%

Gross profit

$7.7B

Revenue

$12.5B

Cost of revenue

$4.8B

Quarter-over-quarter change

-0.9 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.

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2024$11.5B$6.9B$4.6B60.0%
Mar 28, 2025$11.1B$7.0B$4.2B62.6%
Jun 27, 2025$12.5B$7.8B$4.7B62.4%
Sep 26, 2025$12.5B$7.7B$4.8B61.5%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 27, 2025

-0.9 pts

Year-over-year change

Sep 27, 2024

+0.8 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

Gross margin weakened sequentially as cost of revenue rose while revenue held steady. The year-over-year improvement in gross margin was supported by a larger increase in gross profit relative to revenue.

Compared to the prior quarter, gross margin was lower, driven by higher cost of revenue against flat revenue. Versus the same quarter a year ago, gross margin was higher, with gross profit growing faster than revenue.

Monitor the trajectory of cost of revenue, which increased sequentially while revenue remained unchanged.