SH

The Sherwin-Williams Company stock research

Jun 30, 2025

FY2025 Q2

The Sherwin-Williams (SHW) Gross Margin — Quarter Ended Jun 30, 2025

Revenue, cost of revenue, and gross profit all increased compared to the preceding quarter, resulting in an improved gross margin. Versus the same quarter one year earlier, revenue and cost of revenue were broadly stable while gross profit and gross margin were higher.

Gross margin takeaway

Quarter ended Jun 30, 2025 · FY2025 Q2

Revenue, cost of revenue, and gross profit all increased compared to the preceding quarter, resulting in an improved gross margin. Versus the same quarter one year earlier, revenue and cost of revenue were broadly stable while gross profit and gross margin were higher.

  • The strongest observable margin driver is the improvement in gross margin relative to both the prior quarter and the year-ago period, reflecting a favorable relationship between revenue and cost of revenue.
  • Gross margin improved compared with the immediately preceding quarter and the same quarter one year ago. Revenue and cost of revenue were higher sequentially and stable year-over-year.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

49.4%

Gross profit

$3.1B

Revenue

$6.3B

Cost of revenue

$3.2B

Quarter-over-quarter change

+1.2 pts

Year-over-year change

+0.5 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2024$6.2B$3.0B$3.1B49.1%
Dec 31, 2024$5.3B$2.6B$2.7B48.6%
Mar 31, 2025$5.3B$2.6B$2.7B48.2%
Jun 30, 2025$6.3B$3.1B$3.2B49.4%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2025

+1.2 pts

Year-over-year change

Jun 30, 2024

+0.5 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the improvement in gross margin relative to both the prior quarter and the year-ago period, reflecting a favorable relationship between revenue and cost of revenue.

Gross margin improved compared with the immediately preceding quarter and the same quarter one year ago. Revenue and cost of revenue were higher sequentially and stable year-over-year.

Monitor the relationship between revenue growth and cost of revenue changes, as the margin improvement may be influenced by shifts in cost structure.