Air Products and Chemicals, Inc. stock research
FY2026 Q2
Air Products and Chemicals (APD) Gross Margin & Quarterly History
Explore Air Products and Chemicals, Inc. (APD) gross margin from 2023 through the latest reported quarter, using SEC-sourced revenue, gross profit, and direct costs.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q2
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit was slightly lower than the prior quarter but higher than a year ago, while cost of revenue rose, resulting in a gross margin that weakened from the prior quarter but improved from the year-ago period.
- The strongest observable driver is the relationship between cost of revenue and revenue growth. Sequentially, cost of revenue increased at a faster pace than revenue, compressing gross margin.
- Compared to the immediately preceding quarter, gross margin weakened as revenue growth was outpaced by cost of revenue growth. Compared to the same quarter one year earlier, gross margin improved as revenue grew more than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.1%
Gross profit
$987.4M
Revenue
$3.2B
Cost of revenue
$2.2B
Quarter-over-quarter change
-0.9 pts
Year-over-year change
+1.6 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 |
|---|---|---|---|---|
| Jun 30, 2025 | $3.0B | $982.6M | $2.0B | 32.5% |
| Sep 30, 2025 | $3.2B | $1.0B | $2.1B | 32.3% |
| Dec 31, 2025 | $3.1B | $995.0M | $2.1B | 32.1% |
| Mar 31, 2026 | $3.2B | $987.4M | $2.2B | 31.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
-0.9 pts
Year-over-year change
Mar 31, 2025
+1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the relationship between cost of revenue and revenue growth. Sequentially, cost of revenue increased at a faster pace than revenue, compressing gross margin.
Compared to the immediately preceding quarter, gross margin weakened as revenue growth was outpaced by cost of revenue growth. Compared to the same quarter one year earlier, gross margin improved as revenue grew more than cost of revenue.
Monitor whether the cost of revenue continues to grow faster than revenue in upcoming quarters.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Air Products and Chemicals, Inc. (APD) | 31.1% |