Rockwell Automation, Inc. stock research
FY2025 Q1
Rockwell Automation (ROK) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue increased, resulting in a lower gross margin. Compared to the same quarter last year, revenue was lower but gross profit was higher, and cost of revenue was lower, leading to an improved gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2025 Q1
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue increased, resulting in a lower gross margin. Compared to the same quarter last year, revenue was lower but gross profit was higher, and cost of revenue was lower, leading to an improved gross margin.
- The gross margin weakened sharply from the prior quarter, driven by a higher proportion of cost of revenue relative to revenue. The margin improved significantly versus the same quarter last year, with cost of revenue declining more than revenue.
- Compared to the immediately preceding quarter, gross margin was lower, with revenue lower and cost of revenue higher. Compared to the same quarter one year earlier, gross margin was higher, with revenue lower but cost of revenue lower by a greater extent.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
46.7%
Gross profit
$878.0M
Revenue
$1.9B
Cost of revenue
$1.0B
Quarter-over-quarter change
-23.5 pts
Year-over-year change
+7.9 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 | $2.1B | $833.0M | $1.3B | 39.2% |
| Jun 30, 2024 | $2.1B | $795.0M | $1.3B | 38.8% |
| Sep 30, 2024 | $2.0B | $1.4B | $607.0M | 70.2% |
| Dec 31, 2024 | $1.9B | $878.0M | $1.0B | 46.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-23.5 pts
Year-over-year change
Dec 31, 2023
+7.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened sharply from the prior quarter, driven by a higher proportion of cost of revenue relative to revenue. The margin improved significantly versus the same quarter last year, with cost of revenue declining more than revenue.
Compared to the immediately preceding quarter, gross margin was lower, with revenue lower and cost of revenue higher. Compared to the same quarter one year earlier, gross margin was higher, with revenue lower but cost of revenue lower by a greater extent.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters, as its increase this quarter drove the margin decline from the prior period.