Phillips 66 stock research
FY2025 Q2
Phillips 66 (PSX) Gross Margin — Quarter Ended Jun 30, 2025
Revenue increased compared to the prior quarter and decreased compared to the same quarter last year. Gross profit and gross margin both improved sequentially and year-over-year, while cost of revenue rose from the prior quarter but fell from the year-ago period.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue increased compared to the prior quarter and decreased compared to the same quarter last year. Gross profit and gross margin both improved sequentially and year-over-year, while cost of revenue rose from the prior quarter but fell from the year-ago period.
- The gross margin strengthened sequentially and year-over-year, driven by a proportionally larger increase in gross profit relative to revenue when compared to the prior quarter, and a smaller decline in gross profit relative to revenue when compared to the same quarter last year.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, with gross profit rising more sharply, leading to an improved gross margin. Compared to the same quarter one year earlier, revenue and cost of revenue were lower, while gross profit was higher, resulting in a strengthened gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
12.7%
Gross profit
$4.2B
Revenue
$33.3B
Cost of revenue
$29.1B
Quarter-over-quarter change
+3.6 pts
Year-over-year change
+3.6 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 |
|---|---|---|---|---|
| Sep 30, 2024 | $35.5B | $3.3B | $32.2B | 9.4% |
| Dec 31, 2024 | $33.7B | $2.9B | $30.8B | 8.7% |
| Mar 31, 2025 | $30.4B | $2.8B | $27.7B | 9.1% |
| Jun 30, 2025 | $33.3B | $4.2B | $29.1B | 12.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+3.6 pts
Year-over-year change
Jun 30, 2024
+3.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin strengthened sequentially and year-over-year, driven by a proportionally larger increase in gross profit relative to revenue when compared to the prior quarter, and a smaller decline in gross profit relative to revenue when compared to the same quarter last year.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, with gross profit rising more sharply, leading to an improved gross margin. Compared to the same quarter one year earlier, revenue and cost of revenue were lower, while gross profit was higher, resulting in a strengthened gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as its sequential increase outpaced revenue growth in the prior quarter but reversed in the year-over-year comparison.