PPG Industries, Inc. stock research
FY2025 Q3
PPG Industries (PPG) Gross Margin — Quarter Ended Sep 30, 2025
In the current quarter, revenue was lower than the immediately preceding quarter but higher than the same quarter a year earlier. Gross profit decreased from the prior quarter while remaining consistent with the year-ago level; cost of revenue was unchanged from both periods, resulting in a weaker gross margin compared to both the prior and year-ago quarters.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
In the current quarter, revenue was lower than the immediately preceding quarter but higher than the same quarter a year earlier. Gross profit decreased from the prior quarter while remaining consistent with the year-ago level; cost of revenue was unchanged from both periods, resulting in a weaker gross margin compared to both the prior and year-ago quarters.
- The primary observable driver was the stability of cost of revenue, which did not vary with the changes in revenue, leading to a lower gross margin when revenue declined.
- Compared to the prior quarter, revenue and gross profit both decreased while cost of revenue remained flat, resulting in a lower gross margin. Relative to the year-ago quarter, revenue increased but gross profit was unchanged, again with cost of revenue flat, causing gross margin to edge lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
40.6%
Gross profit
$1.7B
Revenue
$4.1B
Cost of revenue
$2.4B
Quarter-over-quarter change
-1.5 pts
Year-over-year change
-0.4 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 | $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% |
| Sep 30, 2025 | $4.1B | $1.7B | $2.4B | 40.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-1.5 pts
Year-over-year change
Sep 30, 2024
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver was the stability of cost of revenue, which did not vary with the changes in revenue, leading to a lower gross margin when revenue declined.
Compared to the prior quarter, revenue and gross profit both decreased while cost of revenue remained flat, resulting in a lower gross margin. Relative to the year-ago quarter, revenue increased but gross profit was unchanged, again with cost of revenue flat, causing gross margin to edge lower.
Monitor whether cost of revenue continues to stay flat as revenue changes, as that would directly influence future gross margin trends.