Avery Dennison Corporation stock research
FY2025 Q4
Avery Dennison (AVY) Gross Margin — Quarter Ended Dec 31, 2025
Revenue increased from both the preceding quarter and the same quarter one year earlier, while cost of revenue remained flat. As a result, gross profit rose and gross margin was stable versus the prior quarter and improved from the year-ago period.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue increased from both the preceding quarter and the same quarter one year earlier, while cost of revenue remained flat. As a result, gross profit rose and gross margin was stable versus the prior quarter and improved from the year-ago period.
- The most notable driver was the unchanged cost of revenue, which did not increase despite higher revenue, allowing gross profit to grow and margin to hold steady.
- Compared with the preceding quarter, revenue and gross profit were higher, cost of revenue was the same, and gross margin was stable. Compared with the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was unchanged, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
28.7%
Gross profit
$650.7M
Revenue
$2.3B
Cost of revenue
$1.6B
Quarter-over-quarter change
-0.0 pts
Year-over-year change
+0.8 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 29, 2025 | $2.1B | $621.5M | $1.5B | 28.9% |
| Jun 28, 2025 | $2.2B | $639.1M | $1.6B | 28.8% |
| Sep 27, 2025 | $2.2B | $635.0M | $1.6B | 28.7% |
| Dec 31, 2025 | $2.3B | $650.7M | $1.6B | 28.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 27, 2025
-0.0 pts
Year-over-year change
Dec 28, 2024
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable driver was the unchanged cost of revenue, which did not increase despite higher revenue, allowing gross profit to grow and margin to hold steady.
Compared with the preceding quarter, revenue and gross profit were higher, cost of revenue was the same, and gross margin was stable. Compared with the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was unchanged, and gross margin improved.
Monitor whether cost of revenue can remain stable as revenue continues to change, as that directly affects gross margin direction.