AE

The AES Corporation stock research

Sep 30, 2025

FY2025 Q3

The AES (AES) Gross Margin — Quarter Ended Sep 30, 2025

Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose at a slower pace, leading to an improvement in gross margin. Compared to the same quarter last year, revenue was slightly higher and gross profit was marginally higher, with gross margin remaining broadly stable.

Gross margin takeaway

Quarter ended Sep 30, 2025 · FY2025 Q3

Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose at a slower pace, leading to an improvement in gross margin. Compared to the same quarter last year, revenue was slightly higher and gross profit was marginally higher, with gross margin remaining broadly stable.

  • The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue from the prior quarter, which directly supported gross margin expansion.
  • Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin was slightly lower but remained broadly similar.

Gross margin snapshot

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

Gross margin

21.9%

Gross profit

$735.0M

Revenue

$3.4B

Cost of revenue

$2.6B

Quarter-over-quarter change

+6.1 pts

Year-over-year change

-0.0 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2024$3.0B$420.0M$2.5B14.2%
Mar 31, 2025$2.9B$441.0M$2.5B15.1%
Jun 30, 2025$2.9B$453.0M$2.4B15.9%
Sep 30, 2025$3.4B$735.0M$2.6B21.9%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2025

+6.1 pts

Year-over-year change

Sep 30, 2024

-0.0 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 growth and cost of revenue growth; revenue increased more than cost of revenue from the prior quarter, which directly supported gross margin expansion.

Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin was slightly lower but remained broadly similar.

Monitor the trend in cost of revenue relative to revenue, as its growth rate will influence future gross margin direction.