PPG Industries, Inc. stock research
FY2025 Q2
PPG Industries (PPG) Gross Margin — Quarter Ended Jun 30, 2025
Revenue in the current quarter was higher than the immediately preceding quarter and stable compared to the same quarter one year earlier. Gross profit and cost of revenue moved proportionally, resulting in a gross margin that improved versus the prior quarter but weakened slightly against the year-ago period.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue in the current quarter was higher than the immediately preceding quarter and stable compared to the same quarter one year earlier. Gross profit and cost of revenue moved proportionally, resulting in a gross margin that improved versus the prior quarter but weakened slightly against the year-ago period.
- The gross margin strengthened sequentially as revenue grew faster than cost of revenue, narrowing the cost gap. Compared with the same quarter last year, the margin weakened slightly because cost of revenue decreased less than revenue.
- Revenue and gross profit both rose from the prior quarter, while cost of revenue increased moderately, leading to a higher gross margin. Versus the same quarter last year, revenue was virtually unchanged; however, a slightly lower cost of revenue produced a marginally improved gross profit but a slightly lower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.0%
Gross profit
$1.8B
Revenue
$4.2B
Cost of revenue
$2.4B
Quarter-over-quarter change
+0.2 pts
Year-over-year change
-0.1 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 |
|---|---|---|---|---|
| Sep 30, 2024 | $4.0B | $1.7B | $2.4B | 40.9% |
| Dec 31, 2024 | $3.7B | $1.5B | $2.2B | 40.6% |
| Mar 31, 2025 | $3.7B | $1.5B | $2.1B | 41.9% |
| Jun 30, 2025 | $4.2B | $1.8B | $2.4B | 42.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+0.2 pts
Year-over-year change
Jun 30, 2024
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin strengthened sequentially as revenue grew faster than cost of revenue, narrowing the cost gap. Compared with the same quarter last year, the margin weakened slightly because cost of revenue decreased less than revenue.
Revenue and gross profit both rose from the prior quarter, while cost of revenue increased moderately, leading to a higher gross margin. Versus the same quarter last year, revenue was virtually unchanged; however, a slightly lower cost of revenue produced a marginally improved gross profit but a slightly lower gross margin.
Monitor the relationship between revenue growth and cost of revenue changes in subsequent quarters, as slight gross margin compression year-over-year suggests a potential cost efficiency trend.