The Procter & Gamble Company stock research
FY2025 Q1
The Procter & Gamble (PG) Gross Margin — Quarter Ended Sep 30, 2024
Revenue rose compared to the prior quarter but fell relative to the same quarter last year. Gross profit followed a similar pattern, while cost of revenue increased from the prior quarter but decreased year over year, resulting in an improved gross margin versus the prior quarter and a stable margin compared to a year ago.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2025 Q1
Revenue rose compared to the prior quarter but fell relative to the same quarter last year. Gross profit followed a similar pattern, while cost of revenue increased from the prior quarter but decreased year over year, resulting in an improved gross margin versus the prior quarter and a stable margin compared to a year ago.
- The gross margin improvement from the prior quarter was driven by a larger increase in revenue relative to cost of revenue, while the year-over-year stability reflects a proportional decrease in both revenue and cost of revenue.
- Compared to the prior quarter, revenue and gross profit were higher, cost of revenue was slightly higher, and gross margin improved. Compared to the same quarter last year, revenue and gross profit were lower, cost of revenue was lower, and gross margin was stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
52.1%
Gross profit
$11.3B
Revenue
$21.7B
Cost of revenue
$10.4B
Quarter-over-quarter change
+2.5 pts
Year-over-year change
+0.1 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $21.4B | $11.3B | $10.1B | 52.7% |
| Mar 31, 2024 | $20.2B | $10.3B | $9.9B | 51.2% |
| Jun 30, 2024 | $20.5B | $10.2B | $10.3B | 49.6% |
| Sep 30, 2024 | $21.7B | $11.3B | $10.4B | 52.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+2.5 pts
Year-over-year change
Sep 30, 2023
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement from the prior quarter was driven by a larger increase in revenue relative to cost of revenue, while the year-over-year stability reflects a proportional decrease in both revenue and cost of revenue.
Compared to the prior quarter, revenue and gross profit were higher, cost of revenue was slightly higher, and gross margin improved. Compared to the same quarter last year, revenue and gross profit were lower, cost of revenue was lower, and gross margin was stable.
Monitor the trend in cost of revenue relative to revenue, as its movement was the primary factor behind the margin changes this quarter.