Occidental Petroleum Corporation stock research
FY2025 Q3
Occidental Petroleum (OXY) Gross Margin — Quarter Ended Sep 30, 2025
Revenue rose compared to the prior quarter but fell from the same quarter a year ago, while cost of revenue declined on both comparisons. As a result, gross profit improved sequentially but was lower year-over-year, and gross margin strengthened relative to both periods.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue rose compared to the prior quarter but fell from the same quarter a year ago, while cost of revenue declined on both comparisons. As a result, gross profit improved sequentially but was lower year-over-year, and gross margin strengthened relative to both periods.
- The reduction in cost of revenue, which decreased both sequentially and year-over-year, was the strongest observable driver of the gross margin improvement. Even as revenue declined from a year ago, the lower cost base supported a higher margin.
- Compared to the immediately preceding quarter, revenue increased while cost of revenue decreased, leading to an improved gross margin. Versus the same quarter one year earlier, revenue was lower but cost of revenue also declined, resulting in a slightly higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
87.8%
Gross profit
$5.9B
Revenue
$6.7B
Cost of revenue
$812.0M
Quarter-over-quarter change
+1.3 pts
Year-over-year change
+0.5 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 |
|---|---|---|---|---|
| Dec 31, 2024 | $2.2B | $1.7B | $494.0M | 77.1% |
| Mar 31, 2025 | $5.8B | $5.0B | $801.0M | 86.2% |
| Jun 30, 2025 | $6.3B | $5.5B | $847.0M | 86.6% |
| Sep 30, 2025 | $6.7B | $5.9B | $812.0M | 87.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+1.3 pts
Year-over-year change
Sep 30, 2024
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The reduction in cost of revenue, which decreased both sequentially and year-over-year, was the strongest observable driver of the gross margin improvement. Even as revenue declined from a year ago, the lower cost base supported a higher margin.
Compared to the immediately preceding quarter, revenue increased while cost of revenue decreased, leading to an improved gross margin. Versus the same quarter one year earlier, revenue was lower but cost of revenue also declined, resulting in a slightly higher gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as the current margin strength depends on continued cost discipline.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Occidental Petroleum Corporation (OXY) | 87.8% |