3M Company stock research
FY2025 Q1
3M (MMM) Gross Margin — Quarter Ended Mar 31, 2025
Revenue was stable compared to both the prior quarter and the same quarter last year. Gross profit improved from the prior quarter, while cost of revenue declined, leading to a higher gross margin; however, gross margin weakened slightly versus the same quarter last year.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue was stable compared to both the prior quarter and the same quarter last year. Gross profit improved from the prior quarter, while cost of revenue declined, leading to a higher gross margin; however, gross margin weakened slightly versus the same quarter last year.
- The strongest observable margin driver was the reduction in cost of revenue relative to the prior quarter, which directly supported gross profit growth and margin expansion.
- Compared to the prior quarter, gross margin improved as gross profit rose while revenue held steady. Compared to the same quarter last year, gross margin was slightly lower despite similar revenue and cost levels.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.6%
Gross profit
$2.5B
Revenue
$6.0B
Cost of revenue
$3.5B
Quarter-over-quarter change
-0.5 pts
Year-over-year change
-0.5 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 |
|---|---|---|---|---|
| Mar 31, 2024 | $6.0B | $2.5B | $3.5B | 42.1% |
| Jun 30, 2024 | $6.3B | $2.7B | $3.6B | 42.9% |
| Sep 30, 2024 | $6.3B | $2.6B | $3.6B | 42.1% |
| Mar 31, 2025 | $6.0B | $2.5B | $3.5B | 41.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.5 pts
Year-over-year change
Mar 31, 2024
-0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the reduction in cost of revenue relative to the prior quarter, which directly supported gross profit growth and margin expansion.
Compared to the prior quarter, gross margin improved as gross profit rose while revenue held steady. Compared to the same quarter last year, gross margin was slightly lower despite similar revenue and cost levels.
Monitor whether cost of revenue continues to decline or stabilizes in future quarters, as it was the key factor in the current margin improvement.