3M Company stock research
FY2025 Q4
3M (MMM) Gross Margin — Quarter Ended Dec 31, 2025
Revenue decreased while cost of revenue increased, causing gross profit to decline and gross margin to weaken compared to the prior quarter. Versus the same quarter a year earlier, revenue was slightly higher but gross profit and gross margin were lower, as cost of revenue grew more than revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue decreased while cost of revenue increased, causing gross profit to decline and gross margin to weaken compared to the prior quarter. Versus the same quarter a year earlier, revenue was slightly higher but gross profit and gross margin were lower, as cost of revenue grew more than revenue.
- The strongest observable driver is the relationship between cost of revenue and revenue: cost of revenue rose while revenue fell, directly compressing gross profit and margin.
- Compared to the prior quarter, gross margin weakened as revenue fell and cost of revenue rose. Compared to the same quarter a year ago, gross margin also weakened, with revenue slightly higher but cost of revenue increasing more sharply.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.6%
Gross profit
$2.1B
Revenue
$6.1B
Cost of revenue
$4.1B
Quarter-over-quarter change
-8.3 pts
Year-over-year change
-4.1 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, 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% |
| Dec 31, 2025 | $6.1B | $2.1B | $4.1B | 33.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-8.3 pts
Year-over-year change
Dec 31, 2024
-4.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the relationship between cost of revenue and revenue: cost of revenue rose while revenue fell, directly compressing gross profit and margin.
Compared to the prior quarter, gross margin weakened as revenue fell and cost of revenue rose. Compared to the same quarter a year ago, gross margin also weakened, with revenue slightly higher but cost of revenue increasing more sharply.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.