Parker-Hannifin Corporation stock research
FY2025 Q2
Parker-Hannifin (PH) Gross Margin — Quarter Ended Dec 31, 2024
Revenue decreased compared to the prior quarter and the same quarter last year, while gross profit was lower than the prior quarter but stable versus a year ago. Cost of revenue declined relative to both periods, and gross margin weakened sequentially but improved year-over-year.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2025 Q2
Revenue decreased compared to the prior quarter and the same quarter last year, while gross profit was lower than the prior quarter but stable versus a year ago. Cost of revenue declined relative to both periods, and gross margin weakened sequentially but improved year-over-year.
- The strongest observable margin driver is the year-over-year improvement in gross margin, which rose despite lower revenue, indicating that cost of revenue declined more than proportionally. This suggests a favorable shift in the relationship between revenue and cost of revenue compared to the prior year.
- Compared to the immediately preceding quarter, gross margin weakened as revenue and gross profit both fell, with gross profit declining slightly more relative to revenue. Versus the same quarter one year earlier, gross margin improved, as revenue was lower but gross profit held steady and cost of revenue decreased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.3%
Gross profit
$1.7B
Revenue
$4.7B
Cost of revenue
$3.0B
Quarter-over-quarter change
-0.5 pts
Year-over-year change
+0.6 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 | $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% |
| Dec 31, 2024 | $4.7B | $1.7B | $3.0B | 36.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.5 pts
Year-over-year change
Dec 31, 2023
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the year-over-year improvement in gross margin, which rose despite lower revenue, indicating that cost of revenue declined more than proportionally. This suggests a favorable shift in the relationship between revenue and cost of revenue compared to the prior year.
Compared to the immediately preceding quarter, gross margin weakened as revenue and gross profit both fell, with gross profit declining slightly more relative to revenue. Versus the same quarter one year earlier, gross margin improved, as revenue was lower but gross profit held steady and cost of revenue decreased.
Monitor the trajectory of cost of revenue relative to revenue, as the current quarter's year-over-year decline in cost of revenue outpaced the revenue decline, supporting margin expansion.