The AES Corporation stock research
FY2025 Q4
The AES (AES) Gross Margin — Quarter Ended Dec 31, 2025
Revenue decreased while cost of revenue also decreased, but gross profit fell more sharply, causing gross margin to weaken compared to the prior quarter. Relative to the same quarter a year earlier, revenue increased, cost of revenue was stable, and gross profit rose, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue decreased while cost of revenue also decreased, but gross profit fell more sharply, causing gross margin to weaken compared to the prior quarter. Relative to the same quarter a year earlier, revenue increased, cost of revenue was stable, and gross profit rose, resulting in an improved gross margin.
- The strongest observable margin driver is the stable cost of revenue compared to the year-ago quarter, which allowed a higher revenue to flow through to gross profit. The concrete item to monitor is the relationship between revenue and cost of revenue in future periods.
- Compared to the immediately preceding quarter, gross margin weakened as revenue declined proportionally more than cost of revenue. Compared to the same quarter one year earlier, gross margin improved because revenue increased while cost of revenue remained unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
18.8%
Gross profit
$582.0M
Revenue
$3.1B
Cost of revenue
$2.5B
Quarter-over-quarter change
-3.2 pts
Year-over-year change
+4.6 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 |
|---|---|---|---|---|
| Mar 31, 2025 | $2.9B | $441.0M | $2.5B | 15.1% |
| Jun 30, 2025 | $2.9B | $453.0M | $2.4B | 15.9% |
| Sep 30, 2025 | $3.4B | $735.0M | $2.6B | 21.9% |
| Dec 31, 2025 | $3.1B | $582.0M | $2.5B | 18.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-3.2 pts
Year-over-year change
Dec 31, 2024
+4.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the stable cost of revenue compared to the year-ago quarter, which allowed a higher revenue to flow through to gross profit. The concrete item to monitor is the relationship between revenue and cost of revenue in future periods.
Compared to the immediately preceding quarter, gross margin weakened as revenue declined proportionally more than cost of revenue. Compared to the same quarter one year earlier, gross margin improved because revenue increased while cost of revenue remained unchanged.
Monitor whether cost of revenue can remain stable if revenue continues to change.