Air Products and Chemicals, Inc. stock research
FY2025 Q4
Air Products and Chemicals (APD) Gross Margin — Quarter Ended Sep 30, 2025
Revenue increased from the prior quarter but was unchanged from a year ago. Gross profit rose from the prior quarter but declined year-over-year, while cost of revenue increased from the prior quarter and was stable from a year ago, resulting in a gross margin that was slightly lower than the prior quarter and lower than the year-ago quarter.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q4
Revenue increased from the prior quarter but was unchanged from a year ago. Gross profit rose from the prior quarter but declined year-over-year, while cost of revenue increased from the prior quarter and was stable from a year ago, resulting in a gross margin that was slightly lower than the prior quarter and lower than the year-ago quarter.
- The margin driver is the relationship between cost of revenue and revenue. From the prior quarter, cost of revenue increased while revenue increased, but gross profit rose less than proportionally. Compared to a year ago, cost of revenue was stable while gross profit was lower.
- Compared to the prior quarter, gross margin was slightly lower, revenue was higher, and gross profit was higher. Compared to the same quarter last year, gross margin was lower, revenue was unchanged, and gross profit was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.3%
Gross profit
$1.0B
Revenue
$3.2B
Cost of revenue
$2.1B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
-1.7 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 |
|---|---|---|---|---|
| Dec 31, 2024 | $2.9B | $915.0M | $2.0B | 31.2% |
| Mar 31, 2025 | $2.9B | $862.3M | $2.1B | 29.6% |
| Jun 30, 2025 | $3.0B | $982.6M | $2.0B | 32.5% |
| Sep 30, 2025 | $3.2B | $1.0B | $2.1B | 32.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-0.3 pts
Year-over-year change
Sep 30, 2024
-1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The margin driver is the relationship between cost of revenue and revenue. From the prior quarter, cost of revenue increased while revenue increased, but gross profit rose less than proportionally. Compared to a year ago, cost of revenue was stable while gross profit was lower.
Compared to the prior quarter, gross margin was slightly lower, revenue was higher, and gross profit was higher. Compared to the same quarter last year, gross margin was lower, revenue was unchanged, and gross profit was lower.
Monitor the trend in cost of revenue relative to revenue, as it has been a key factor in the gross margin movement.