Nordson Corporation stock research
FY2025 Q3
Nordson (NDSN) Gross Margin — Quarter Ended Jul 31, 2025
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin was stable sequentially but weakened relative to the prior year, as cost of revenue grew more than revenue.
Gross margin takeaway
Quarter ended Jul 31, 2025 · FY2025 Q3
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin was stable sequentially but weakened relative to the prior year, as cost of revenue grew more than revenue.
- The primary observable margin driver is the relationship between cost of revenue and revenue growth. The year-over-year decline in gross margin resulted from cost of revenue increasing at a higher rate than revenue.
- Compared to the immediately preceding quarter, gross margin improved slightly as revenue and gross profit grew faster than cost of revenue. Versus the same quarter one year earlier, gross margin weakened despite higher revenue and gross profit, as cost of revenue increased more sharply.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
54.8%
Gross profit
$406.5M
Revenue
$741.5M
Cost of revenue
$335.0M
Quarter-over-quarter change
+0.1 pts
Year-over-year change
-1.0 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 |
|---|---|---|---|---|
| Oct 31, 2024 | $744.5M | $402.8M | $341.7M | 54.1% |
| Jan 31, 2025 | $615.4M | $335.9M | $279.5M | 54.6% |
| Apr 30, 2025 | $682.9M | $373.9M | $309.0M | 54.7% |
| Jul 31, 2025 | $741.5M | $406.5M | $335.0M | 54.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 30, 2025
+0.1 pts
Year-over-year change
Jul 31, 2024
-1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable margin driver is the relationship between cost of revenue and revenue growth. The year-over-year decline in gross margin resulted from cost of revenue increasing at a higher rate than revenue.
Compared to the immediately preceding quarter, gross margin improved slightly as revenue and gross profit grew faster than cost of revenue. Versus the same quarter one year earlier, gross margin weakened despite higher revenue and gross profit, as cost of revenue increased more sharply.
Monitor the trend in cost of revenue as a proportion of revenue in future quarters.