3M Company stock research
FY2025 Q2
3M (MMM) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit both increased from the prior quarter, leading to an improved gross margin. However, compared to the same quarter last year, the gross margin was slightly weaker despite similar revenue and gross profit levels.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue and gross profit both increased from the prior quarter, leading to an improved gross margin. However, compared to the same quarter last year, the gross margin was slightly weaker despite similar revenue and gross profit levels.
- The strongest observable driver of the gross margin change was the relationship between cost of revenue and revenue. In the current quarter, cost of revenue grew at a slower pace than revenue relative to the prior quarter, contributing to the margin improvement.
- Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.5%
Gross profit
$2.7B
Revenue
$6.3B
Cost of revenue
$3.6B
Quarter-over-quarter change
+0.9 pts
Year-over-year change
-0.4 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2025 | $6.3B | $2.7B | $3.6B | 42.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+0.9 pts
Year-over-year change
Jun 30, 2024
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the gross margin change was the relationship between cost of revenue and revenue. In the current quarter, cost of revenue grew at a slower pace than revenue relative to the prior quarter, contributing to the margin improvement.
Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin was slightly lower.
Monitor whether the cost of revenue continues to grow at a rate that supports gross margin stability.