KV

Kenvue Inc. stock research

Jun 29, 2025

FY2025 Q2

Kenvue (KVUE) Gross Margin — Quarter Ended Jun 29, 2025

Revenue and gross profit both increased compared to the prior quarter, while cost of revenue remained stable, leading to an improvement in gross margin. Versus the same quarter last year, revenue and gross profit were lower, cost of revenue was unchanged, and gross margin weakened slightly.

Gross margin takeaway

Quarter ended Jun 29, 2025 · FY2025 Q2

Revenue and gross profit both increased compared to the prior quarter, while cost of revenue remained stable, leading to an improvement in gross margin. Versus the same quarter last year, revenue and gross profit were lower, cost of revenue was unchanged, and gross margin weakened slightly.

  • The strongest observable margin driver is the relationship between revenue growth and stable cost of revenue, which allowed gross profit to expand and gross margin to improve sequentially.
  • Compared to the immediately preceding quarter, gross margin improved as revenue grew faster than cost of revenue. Compared to the same quarter one year earlier, gross margin was slightly lower, with revenue and gross profit both declining while cost of revenue remained unchanged.

Gross margin snapshot

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

Gross margin

58.9%

Gross profit

$2.3B

Revenue

$3.8B

Cost of revenue

$1.6B

Quarter-over-quarter change

+0.9 pts

Year-over-year change

-0.2 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 29, 2024$3.9B$2.3B$1.6B58.5%
Dec 29, 2024$3.7B$2.1B$1.6B56.5%
Mar 30, 2025$3.7B$2.2B$1.6B58.0%
Jun 29, 2025$3.8B$2.3B$1.6B58.9%

Quarterly comparisons

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

Previous-quarter change

Mar 30, 2025

+0.9 pts

Year-over-year change

Jun 30, 2024

-0.2 pts

What the margin says

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

The strongest observable margin driver is the relationship between revenue growth and stable cost of revenue, which allowed gross profit to expand and gross margin to improve sequentially.

Compared to the immediately preceding quarter, gross margin improved as revenue grew faster than cost of revenue. Compared to the same quarter one year earlier, gross margin was slightly lower, with revenue and gross profit both declining while cost of revenue remained unchanged.

Monitor whether cost of revenue remains stable in future quarters, as it was unchanged both sequentially and year-over-year.