Stanley Black & Decker, Inc. stock research
FY2025 Q2
Stanley Black & Decker (SWK) Gross Margin — Quarter Ended Jun 28, 2025
Revenue was higher than the prior quarter but lower than the same quarter last year. Gross profit was stable across all three periods, while cost of revenue increased sequentially and remained similar year over year, resulting in a gross margin that weakened both sequentially and compared to the prior year.
Gross margin takeaway
Quarter ended Jun 28, 2025 · FY2025 Q2
Revenue was higher than the prior quarter but lower than the same quarter last year. Gross profit was stable across all three periods, while cost of revenue increased sequentially and remained similar year over year, resulting in a gross margin that weakened both sequentially and compared to the prior year.
- The sequential increase in cost of revenue outpaced the increase in revenue, which was the strongest observable factor compressing gross margin. Year-over-year, revenue declined while cost of revenue was nearly unchanged, further contributing to the margin decline.
- Gross margin weakened compared to the immediately preceding quarter and also weakened relative to the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
27.0%
Gross profit
$1.1B
Revenue
$3.9B
Cost of revenue
$2.9B
Quarter-over-quarter change
-2.9 pts
Year-over-year change
-1.3 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 |
|---|---|---|---|---|
| Sep 28, 2024 | $3.8B | $1.1B | $2.6B | 29.9% |
| Dec 28, 2024 | $3.7B | $1.1B | $2.6B | 30.8% |
| Mar 29, 2025 | $3.7B | $1.1B | $2.6B | 29.9% |
| Jun 28, 2025 | $3.9B | $1.1B | $2.9B | 27.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 29, 2025
-2.9 pts
Year-over-year change
Jun 29, 2024
-1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential increase in cost of revenue outpaced the increase in revenue, which was the strongest observable factor compressing gross margin. Year-over-year, revenue declined while cost of revenue was nearly unchanged, further contributing to the margin decline.
Gross margin weakened compared to the immediately preceding quarter and also weakened relative to the same quarter one year earlier.
Monitor the trajectory of cost of revenue, as its growth outpaced revenue growth in the current quarter.