Phillips 66 stock research
FY2025 Q3
Phillips 66 (PSX) Gross Margin — Quarter Ended Sep 30, 2025
Revenue increased compared to the prior quarter, while cost of revenue rose at a similar pace, resulting in a slightly lower gross margin. Compared to the same quarter a year earlier, revenue was lower but gross profit improved as cost of revenue declined more significantly, leading to a higher gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue increased compared to the prior quarter, while cost of revenue rose at a similar pace, resulting in a slightly lower gross margin. Compared to the same quarter a year earlier, revenue was lower but gross profit improved as cost of revenue declined more significantly, leading to a higher gross margin.
- The gross margin rose notably compared to the same quarter last year, driven by a larger relative decline in cost of revenue versus revenue. Sequentially, the margin edged lower as cost of revenue increased nearly in line with revenue.
- Compared to the prior quarter, gross margin was slightly lower despite higher revenue. Relative to the same quarter a year earlier, gross margin improved substantially as cost of revenue fell faster than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
12.4%
Gross profit
$4.3B
Revenue
$34.5B
Cost of revenue
$30.2B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
+3.1 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $34.5B | $4.3B | $30.2B | 12.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-0.3 pts
Year-over-year change
Sep 30, 2024
+3.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin rose notably compared to the same quarter last year, driven by a larger relative decline in cost of revenue versus revenue. Sequentially, the margin edged lower as cost of revenue increased nearly in line with revenue.
Compared to the prior quarter, gross margin was slightly lower despite higher revenue. Relative to the same quarter a year earlier, gross margin improved substantially as cost of revenue fell faster than revenue.
Monitor whether the cost of revenue trend relative to revenue continues, as it will directly influence future gross margin direction.