The Procter & Gamble Company stock research
FY2025 Q3
The Procter & Gamble (PG) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year. The gross margin weakened slightly from both prior periods, as the decline in revenue was proportionally larger than the decline in cost of revenue.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q3
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year. The gross margin weakened slightly from both prior periods, as the decline in revenue was proportionally larger than the decline in cost of revenue.
- The strongest observable driver is the relative movement of revenue and cost of revenue. The gross margin declined because revenue decreased more rapidly than cost of revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin was lower. Compared to the same quarter one year earlier, revenue and gross profit were slightly lower, and gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
51.0%
Gross profit
$10.1B
Revenue
$19.8B
Cost of revenue
$9.7B
Quarter-over-quarter change
-1.4 pts
Year-over-year change
-0.2 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2025 | $19.8B | $10.1B | $9.7B | 51.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-1.4 pts
Year-over-year change
Mar 31, 2024
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the relative movement of revenue and cost of revenue. The gross margin declined because revenue decreased more rapidly than cost of revenue.
Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin was lower. Compared to the same quarter one year earlier, revenue and gross profit were slightly lower, and gross margin was slightly lower.
Monitor the trend of cost of revenue relative to revenue to assess whether gross margin can stabilise.