Allegion plc stock research
FY2025 Q4
Allegion (ALLE) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit both decreased from the prior quarter, while cost of revenue declined at a slower pace, resulting in a lower gross margin. Compared to the same quarter last year, revenue and gross profit increased, and gross margin improved slightly.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and gross profit both decreased from the prior quarter, while cost of revenue declined at a slower pace, resulting in a lower gross margin. Compared to the same quarter last year, revenue and gross profit increased, and gross margin improved slightly.
- The gross margin weakened sequentially as the decline in gross profit outpaced the reduction in cost of revenue relative to revenue. Year-over-year, the margin improved modestly, driven by a larger proportional increase in gross profit compared to cost of revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.5%
Gross profit
$459.5M
Revenue
$1.0B
Cost of revenue
$573.7M
Quarter-over-quarter change
-1.3 pts
Year-over-year change
+0.4 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 | $941.9M | $422.5M | $519.4M | 44.9% |
| Jun 30, 2025 | $1.0B | $466.5M | $555.5M | 45.6% |
| Sep 30, 2025 | $1.1B | $489.8M | $580.4M | 45.8% |
| Dec 31, 2025 | $1.0B | $459.5M | $573.7M | 44.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-1.3 pts
Year-over-year change
Dec 31, 2024
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened sequentially as the decline in gross profit outpaced the reduction in cost of revenue relative to revenue. Year-over-year, the margin improved modestly, driven by a larger proportional increase in gross profit compared to cost of revenue.
Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved.
Monitor the trajectory of cost of revenue relative to revenue, as its slower decline sequentially contributed to margin compression.