3M Company stock research
FY2025 Q3
3M (MMM) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both rose compared to the prior quarter and the same quarter last year. Cost of revenue increased more than gross profit, resulting in a slightly lower gross margin relative to the prior quarter but a slightly improved margin compared to a year ago.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue and gross profit both rose compared to the prior quarter and the same quarter last year. Cost of revenue increased more than gross profit, resulting in a slightly lower gross margin relative to the prior quarter but a slightly improved margin compared to a year ago.
- Revenue growth outpaced cost of revenue growth when comparing year-over-year, contributing to a slight year-over-year gross margin improvement. The strongest observable driver is the change in revenue relative to cost of revenue.
- Compared to the immediately preceding quarter, gross margin weakened slightly as cost of revenue increased at a faster rate than revenue. Compared to the same quarter one year earlier, gross margin improved modestly. Both comparisons reflect a similar relationship between revenue and cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.8%
Gross profit
$2.7B
Revenue
$6.5B
Cost of revenue
$3.8B
Quarter-over-quarter change
-0.7 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $6.5B | $2.7B | $3.8B | 41.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-0.7 pts
Year-over-year change
Sep 30, 2024
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Revenue growth outpaced cost of revenue growth when comparing year-over-year, contributing to a slight year-over-year gross margin improvement. The strongest observable driver is the change in revenue relative to cost of revenue.
Compared to the immediately preceding quarter, gross margin weakened slightly as cost of revenue increased at a faster rate than revenue. Compared to the same quarter one year earlier, gross margin improved modestly. Both comparisons reflect a similar relationship between revenue and cost of revenue.
Monitor the trajectory of cost of revenue relative to revenue in future quarters.