The Procter & Gamble Company stock research
FY2026 Q2
The Procter & Gamble (PG) Gross Margin — Quarter Ended Dec 31, 2025
For this quarter, revenue decreased compared to the immediately preceding quarter but increased compared to the same quarter one year earlier. Gross profit declined both sequentially and annually, while cost of revenue decreased sequentially but increased year over year, resulting in a weaker gross margin compared to both periods.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2026 Q2
For this quarter, revenue decreased compared to the immediately preceding quarter but increased compared to the same quarter one year earlier. Gross profit declined both sequentially and annually, while cost of revenue decreased sequentially but increased year over year, resulting in a weaker gross margin compared to both periods.
- The gross margin weakened from the preceding quarter and the year-ago period as the relationship between cost of revenue and revenue shifted unfavorably. Cost of revenue did not decrease as much as revenue sequentially, and increased more than revenue year over year.
- Compared to the immediate prior quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin was lower. Compared to the same quarter one year earlier, revenue was higher, gross profit was lower, cost of revenue was higher, and gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
51.2%
Gross profit
$11.4B
Revenue
$22.2B
Cost of revenue
$10.8B
Quarter-over-quarter change
-0.2 pts
Year-over-year change
-1.2 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $22.2B | $11.4B | $10.8B | 51.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-0.2 pts
Year-over-year change
Dec 31, 2024
-1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened from the preceding quarter and the year-ago period as the relationship between cost of revenue and revenue shifted unfavorably. Cost of revenue did not decrease as much as revenue sequentially, and increased more than revenue year over year.
Compared to the immediate prior quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin was lower. Compared to the same quarter one year earlier, revenue was higher, gross profit was lower, cost of revenue was higher, and gross margin was lower.
Monitor the trend in cost of revenue relative to revenue, as it has been a key factor in the gross margin decline.