McCormick & Company, Incorporated stock research
FY2025 Q2
McCormick & (MKC) Gross Margin — Quarter Ended May 31, 2025
Revenue increased compared to the immediately preceding quarter and the same quarter one year earlier. Gross profit also rose, but gross margin weakened slightly, reflecting a proportionally smaller increase in gross profit relative to revenue.
Gross margin takeaway
Quarter ended May 31, 2025 · FY2025 Q2
Revenue increased compared to the immediately preceding quarter and the same quarter one year earlier. Gross profit also rose, but gross margin weakened slightly, reflecting a proportionally smaller increase in gross profit relative to revenue.
- The increase in revenue was the primary driver of gross profit growth. However, the gross margin edged lower, indicating that the cost of revenue grew at a rate similar to revenue, limiting margin expansion.
- Compared to the prior quarter, revenue and gross profit were higher, while gross margin was slightly lower. Versus the year-ago quarter, revenue and gross profit also increased, but gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.5%
Gross profit
$622.8M
Revenue
$1.7B
Cost of revenue
$1.0B
Quarter-over-quarter change
-0.1 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.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Aug 31, 2024 | $1.7B | $649.9M | $1.0B | 38.7% |
| Nov 30, 2024 | $1.8B | $722.2M | $1.1B | 40.2% |
| Feb 28, 2025 | $1.6B | $604.0M | $1.0B | 37.6% |
| May 31, 2025 | $1.7B | $622.8M | $1.0B | 37.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 28, 2025
-0.1 pts
Year-over-year change
May 31, 2024
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The increase in revenue was the primary driver of gross profit growth. However, the gross margin edged lower, indicating that the cost of revenue grew at a rate similar to revenue, limiting margin expansion.
Compared to the prior quarter, revenue and gross profit were higher, while gross margin was slightly lower. Versus the year-ago quarter, revenue and gross profit also increased, but gross margin was lower.
Monitor the trajectory of gross margin to see if the slight compression continues or stabilizes.