Xylem Inc. stock research
FY2025 Q2
Xylem (XYL) Gross Margin — Quarter Ended Jun 30, 2025
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose at a faster pace than cost of revenue, leading to an improved gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose at a faster pace than cost of revenue, leading to an improved gross margin.
- The primary observable driver was that cost of revenue increased at a slower rate than revenue, which allowed gross profit to grow more quickly.
- Gross margin was higher than both the immediately preceding quarter and the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.8%
Gross profit
$892.0M
Revenue
$2.3B
Cost of revenue
$1.4B
Quarter-over-quarter change
+1.6 pts
Year-over-year change
+1.0 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 30, 2024 | $2.1B | $784.0M | $1.3B | 37.3% |
| Dec 31, 2024 | $2.3B | $857.0M | $1.4B | 38.0% |
| Mar 31, 2025 | $2.1B | $768.0M | $1.3B | 37.1% |
| Jun 30, 2025 | $2.3B | $892.0M | $1.4B | 38.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+1.6 pts
Year-over-year change
Jun 30, 2024
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver was that cost of revenue increased at a slower rate than revenue, which allowed gross profit to grow more quickly.
Gross margin was higher than both the immediately preceding quarter and the same quarter one year earlier.
Monitor the company's inventory management initiatives as noted in the filing, which may affect future cost of revenue.