McCormick & Company, Incorporated stock research
FY2025 Q4
McCormick & (MKC) Gross Margin — Quarter Ended Nov 30, 2025
Revenue increased compared to both the prior quarter and the same quarter one year earlier. Gross profit improved sequentially but declined year over year, resulting in a higher gross margin than the prior quarter but a lower margin than the year-ago quarter.
Gross margin takeaway
Quarter ended Nov 30, 2025 · FY2025 Q4
Revenue increased compared to both the prior quarter and the same quarter one year earlier. Gross profit improved sequentially but declined year over year, resulting in a higher gross margin than the prior quarter but a lower margin than the year-ago quarter.
- The strongest observable margin driver was the sequential growth in revenue, which outpaced the change in cost of revenue, leading to an improved gross margin. Cost of revenue was relatively stable compared to the prior quarter, allowing revenue growth to flow through to higher gross profit.
- Compared to the prior quarter, gross margin improved. Compared to the same quarter one year ago, gross margin declined. Revenue was higher in both comparisons, but gross profit was lower year over year because cost of revenue increased more than revenue relative to the year-ago period.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.9%
Gross profit
$720.3M
Revenue
$1.9B
Cost of revenue
$1.1B
Quarter-over-quarter change
+1.5 pts
Year-over-year change
-1.2 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 |
|---|---|---|---|---|
| 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% |
| Nov 30, 2025 | $1.9B | $720.3M | $1.1B | 38.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 31, 2025
+1.5 pts
Year-over-year change
Nov 30, 2024
-1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the sequential growth in revenue, which outpaced the change in cost of revenue, leading to an improved gross margin. Cost of revenue was relatively stable compared to the prior quarter, allowing revenue growth to flow through to higher gross profit.
Compared to the prior quarter, gross margin improved. Compared to the same quarter one year ago, gross margin declined. Revenue was higher in both comparisons, but gross profit was lower year over year because cost of revenue increased more than revenue relative to the year-ago period.
Monitor the impact of the company's acquisition of an additional ownership interest in McCormick de Mexico, completed after the quarter end, on future cost structure and margins.