McCormick & Company, Incorporated stock research
FY2025 Q3
McCormick & (MKC) Gross Margin — Quarter Ended Aug 31, 2025
Gross margin weakened compared to the prior quarter and declined more notably from the same quarter last year. Revenue was stable sequentially, while cost of revenue grew slightly as a share of sales, leading to a lower gross profit.
Gross margin takeaway
Quarter ended Aug 31, 2025 · FY2025 Q3
Gross margin weakened compared to the prior quarter and declined more notably from the same quarter last year. Revenue was stable sequentially, while cost of revenue grew slightly as a share of sales, leading to a lower gross profit.
- Cost of revenue increased relative to revenue compared with both the prior quarter and the year-ago quarter, compressing gross profit and margin.
- Revenue was essentially unchanged from the prior quarter and higher than the year-ago period. Gross profit was slightly higher than the prior quarter but lower than the same quarter last year, reflecting a weaker gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.4%
Gross profit
$645.1M
Revenue
$1.7B
Cost of revenue
$1.1B
Quarter-over-quarter change
-0.1 pts
Year-over-year change
-1.3 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 |
|---|---|---|---|---|
| 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% |
| Aug 31, 2025 | $1.7B | $645.1M | $1.1B | 37.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 31, 2025
-0.1 pts
Year-over-year change
Aug 31, 2024
-1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Cost of revenue increased relative to revenue compared with both the prior quarter and the year-ago quarter, compressing gross profit and margin.
Revenue was essentially unchanged from the prior quarter and higher than the year-ago period. Gross profit was slightly higher than the prior quarter but lower than the same quarter last year, reflecting a weaker gross margin.
Monitor the trajectory of cost of revenue relative to net sales in upcoming quarters.