The Procter & Gamble Company stock research
FY2025 Q2
The Procter & Gamble (PG) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit both increased compared to the previous quarter and the same quarter last year. Gross margin improved sequentially but was lower than the year-ago period.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2025 Q2
Revenue and gross profit both increased compared to the previous quarter and the same quarter last year. Gross margin improved sequentially but was lower than the year-ago period.
- The strongest observable driver is revenue growth, which exceeded the increase in cost of revenue compared to the previous quarter, leading to an improved gross margin.
- Sequentially, gross margin increased from the prior quarter. Year-over-year, gross margin decreased from the same quarter last year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
52.4%
Gross profit
$11.5B
Revenue
$21.9B
Cost of revenue
$10.4B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
-0.3 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, 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% |
| Dec 31, 2024 | $21.9B | $11.5B | $10.4B | 52.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+0.3 pts
Year-over-year change
Dec 31, 2023
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is revenue growth, which exceeded the increase in cost of revenue compared to the previous quarter, leading to an improved gross margin.
Sequentially, gross margin increased from the prior quarter. Year-over-year, gross margin decreased from the same quarter last year.
Monitor the trend in cost of revenue relative to revenue, especially the year-over-year increase that outpaced revenue growth.