Nordson Corporation stock research
FY2025 Q1
Nordson (NDSN) Gross Margin — Quarter Ended Jan 31, 2025
Revenue and cost of revenue both declined from the prior quarter and the year-ago quarter, with gross profit following the same direction. Gross margin improved sequentially but weakened compared to the same quarter last year.
Gross margin takeaway
Quarter ended Jan 31, 2025 · FY2025 Q1
Revenue and cost of revenue both declined from the prior quarter and the year-ago quarter, with gross profit following the same direction. Gross margin improved sequentially but weakened compared to the same quarter last year.
- The sequential improvement in gross margin was driven by a proportionally larger decline in cost of revenue relative to revenue. Year-over-year, the reduction in cost of revenue was insufficient to offset the revenue decrease, resulting in a lower margin.
- Sequentially, gross margin improved from the previous quarter. Year-over-year, gross margin weakened compared to the same quarter a year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
54.6%
Gross profit
$335.9M
Revenue
$615.4M
Cost of revenue
$279.5M
Quarter-over-quarter change
+0.5 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 |
|---|---|---|---|---|
| Apr 30, 2024 | $650.6M | $365.9M | $284.8M | 56.2% |
| Jul 31, 2024 | $661.6M | $369.0M | $292.6M | 55.8% |
| Oct 31, 2024 | $744.5M | $402.8M | $341.7M | 54.1% |
| Jan 31, 2025 | $615.4M | $335.9M | $279.5M | 54.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 31, 2024
+0.5 pts
Year-over-year change
Jan 31, 2024
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was driven by a proportionally larger decline in cost of revenue relative to revenue. Year-over-year, the reduction in cost of revenue was insufficient to offset the revenue decrease, resulting in a lower margin.
Sequentially, gross margin improved from the previous quarter. Year-over-year, gross margin weakened compared to the same quarter a year earlier.
Monitor the trajectory of cost of revenue, as its relationship to revenue has shown notable variability.