The Procter & Gamble Company stock research
FY2026 Q1
The Procter & Gamble (PG) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both increased compared to the previous quarter and the same quarter last year, while cost of revenue rose less than revenue on a sequential basis, leading to an improved gross margin versus the prior quarter. Gross margin weakened relative to the same quarter a year ago, as cost of revenue grew faster than revenue over that period.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2026 Q1
Revenue and gross profit both increased compared to the previous quarter and the same quarter last year, while cost of revenue rose less than revenue on a sequential basis, leading to an improved gross margin versus the prior quarter. Gross margin weakened relative to the same quarter a year ago, as cost of revenue grew faster than revenue over that period.
- The strongest observable driver is the relationship between revenue and cost of revenue; revenue growth outpaced cost growth sequentially, which was the primary factor in the gross margin improvement from the prior quarter.
- Gross margin improved compared to the immediately preceding quarter but weakened compared to the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
51.4%
Gross profit
$11.5B
Revenue
$22.4B
Cost of revenue
$10.9B
Quarter-over-quarter change
+2.3 pts
Year-over-year change
-0.7 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 | $21.9B | $11.5B | $10.4B | 52.4% |
| Mar 31, 2025 | $19.8B | $10.1B | $9.7B | 51.0% |
| Jun 30, 2025 | $20.9B | $10.3B | $10.6B | 49.1% |
| Sep 30, 2025 | $22.4B | $11.5B | $10.9B | 51.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+2.3 pts
Year-over-year change
Sep 30, 2024
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the relationship between revenue and cost of revenue; revenue growth outpaced cost growth sequentially, which was the primary factor in the gross margin improvement from the prior quarter.
Gross margin improved compared to the immediately preceding quarter but weakened compared to the same quarter one year earlier.
Monitor the trend in cost of revenue relative to revenue, as its growth rate has diverged in opposite directions versus the two comparison periods.