Parker-Hannifin Corporation stock research
FY2025 Q1
Parker-Hannifin (PH) Gross Margin — Quarter Ended Sep 30, 2024
Revenue decreased from the prior quarter but increased from the same quarter last year. Gross margin improved compared to both periods, as cost of revenue declined more than revenue sequentially and remained stable year-over-year.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2025 Q1
Revenue decreased from the prior quarter but increased from the same quarter last year. Gross margin improved compared to both periods, as cost of revenue declined more than revenue sequentially and remained stable year-over-year.
- The gross margin improvement was driven by a proportionally larger decline in cost of revenue relative to revenue compared to the prior quarter, and stable cost of revenue relative to higher revenue compared to the prior year.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter one year earlier, revenue was higher, gross profit was similar, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.8%
Gross profit
$1.8B
Revenue
$4.9B
Cost of revenue
$3.1B
Quarter-over-quarter change
+0.9 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, 2023 | $4.8B | $1.7B | $3.1B | 35.7% |
| Mar 31, 2024 | $5.1B | $1.8B | $3.3B | 35.4% |
| Jun 30, 2024 | $5.2B | $1.9B | $3.3B | 35.9% |
| Sep 30, 2024 | $4.9B | $1.8B | $3.1B | 36.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.9 pts
Year-over-year change
Sep 30, 2023
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by a proportionally larger decline in cost of revenue relative to revenue compared to the prior quarter, and stable cost of revenue relative to higher revenue compared to the prior year.
Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter one year earlier, revenue was higher, gross profit was similar, and gross margin was higher.
Monitor the impact of foreign currency exchange rate changes and segment sales mix on future gross margins, as noted in the filing.