Brown-Forman Corporation stock research
FY2026 Q1
Brown-Forman (BF-B) Gross Margin — Quarter Ended Jul 31, 2025
Revenue decreased versus the prior quarter and the same quarter last year, while gross profit declined relative to both periods. Gross margin improved compared to the prior quarter but was slightly lower than the year-ago period, as cost of revenue fell more than revenue on both sequential and annual bases.
Gross margin takeaway
Quarter ended Jul 31, 2025 · FY2026 Q1
Revenue decreased versus the prior quarter and the same quarter last year, while gross profit declined relative to both periods. Gross margin improved compared to the prior quarter but was slightly lower than the year-ago period, as cost of revenue fell more than revenue on both sequential and annual bases.
- The key driver of the sequential gross margin improvement is the larger reduction in cost of revenue relative to revenue. This relationship also supported the year-over-year comparison, where cost of revenue declined while revenue decreased less sharply.
- Gross margin strengthened from the immediately preceding quarter but weakened slightly from the same quarter one year earlier. Revenue and gross profit were higher than the previous quarter but lower than the year-ago quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.7%
Gross profit
$552.0M
Revenue
$924.0M
Cost of revenue
$372.0M
Quarter-over-quarter change
+2.4 pts
Year-over-year change
+0.3 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 |
|---|---|---|---|---|
| Oct 31, 2024 | $1.1B | $646.0M | $449.0M | 59.0% |
| Jan 31, 2025 | $1.0B | $619.0M | $416.0M | 59.8% |
| Apr 30, 2025 | $894.0M | $513.0M | $381.0M | 57.4% |
| Jul 31, 2025 | $924.0M | $552.0M | $372.0M | 59.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 30, 2025
+2.4 pts
Year-over-year change
Jul 31, 2024
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The key driver of the sequential gross margin improvement is the larger reduction in cost of revenue relative to revenue. This relationship also supported the year-over-year comparison, where cost of revenue declined while revenue decreased less sharply.
Gross margin strengthened from the immediately preceding quarter but weakened slightly from the same quarter one year earlier. Revenue and gross profit were higher than the previous quarter but lower than the year-ago quarter.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters, as changes in this relationship directly affect gross margin.