Rockwell Automation, Inc. stock research
FY2025 Q2
Rockwell Automation (ROK) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue remained stable, leading to an improved gross margin. Compared to the same quarter last year, revenue was lower but gross profit was higher, as cost of revenue decreased substantially, resulting in a significantly higher gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q2
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue remained stable, leading to an improved gross margin. Compared to the same quarter last year, revenue was lower but gross profit was higher, as cost of revenue decreased substantially, resulting in a significantly higher gross margin.
- The strongest observable margin driver is the reduction in cost of revenue relative to revenue, as gross profit grew while revenue declined year over year.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was lower but gross profit was higher, and gross margin improved significantly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
48.6%
Gross profit
$972.0M
Revenue
$2.0B
Cost of revenue
$1.0B
Quarter-over-quarter change
+1.9 pts
Year-over-year change
+9.4 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2025 | $2.0B | $972.0M | $1.0B | 48.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+1.9 pts
Year-over-year change
Mar 31, 2024
+9.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the reduction in cost of revenue relative to revenue, as gross profit grew while revenue declined year over year.
Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was lower but gross profit was higher, and gross margin improved significantly.
Monitor the trajectory of cost of revenue, as its year-over-year decline was the primary factor behind the gross margin improvement.