Rockwell Automation, Inc. stock research
FY2025 Q4
Rockwell Automation (ROK) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue decreased from the prior quarter but increased from a year ago. Gross margin improved sharply from the prior quarter but was slightly lower than the same quarter last year.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue decreased from the prior quarter but increased from a year ago. Gross margin improved sharply from the prior quarter but was slightly lower than the same quarter last year.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue rose while cost of revenue fell from the prior quarter, leading to a significantly higher gross profit and gross margin. Compared to a year ago, revenue grew but cost of revenue grew at a faster pace, resulting in a slightly lower gross margin.
- Compared to the immediately preceding quarter, gross margin improved substantially as revenue increased and cost of revenue decreased. Compared to the same quarter one year earlier, gross margin weakened slightly despite higher revenue, because cost of revenue increased more than proportionally.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
69.4%
Gross profit
$1.6B
Revenue
$2.3B
Cost of revenue
$708.0M
Quarter-over-quarter change
+28.6 pts
Year-over-year change
-0.7 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 | $1.9B | $878.0M | $1.0B | 46.7% |
| Mar 31, 2025 | $2.0B | $972.0M | $1.0B | 48.6% |
| Jun 30, 2025 | $2.1B | $876.0M | $1.3B | 40.9% |
| Sep 30, 2025 | $2.3B | $1.6B | $708.0M | 69.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+28.6 pts
Year-over-year change
Sep 30, 2024
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue rose while cost of revenue fell from the prior quarter, leading to a significantly higher gross profit and gross margin. Compared to a year ago, revenue grew but cost of revenue grew at a faster pace, resulting in a slightly lower gross margin.
Compared to the immediately preceding quarter, gross margin improved substantially as revenue increased and cost of revenue decreased. Compared to the same quarter one year earlier, gross margin weakened slightly despite higher revenue, because cost of revenue increased more than proportionally.
Monitor the trajectory of cost of revenue relative to revenue, as its increase from a year ago outpaced revenue growth and compressed gross margin.