Brown-Forman Corporation stock research
FY2026 Q2
Brown-Forman (BF-B) Gross Margin — Quarter Ended Oct 31, 2025
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter a year ago.
Gross margin takeaway
Quarter ended Oct 31, 2025 · FY2026 Q2
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter a year ago.
- The gross margin improved year-over-year despite lower revenue, indicating that cost of revenue declined at a faster rate than revenue. The strongest observable driver is the relative movement between revenue and cost of revenue.
- Compared to the prior quarter, gross margin was slightly lower, with revenue and gross profit both higher but cost of revenue increasing at a faster pace. Versus the same quarter last year, gross margin was higher, as revenue and gross profit were lower but cost of revenue declined more sharply.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.4%
Gross profit
$615.0M
Revenue
$1.0B
Cost of revenue
$421.0M
Quarter-over-quarter change
-0.4 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 |
|---|---|---|---|---|
| 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% |
| Oct 31, 2025 | $1.0B | $615.0M | $421.0M | 59.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 31, 2025
-0.4 pts
Year-over-year change
Oct 31, 2024
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved year-over-year despite lower revenue, indicating that cost of revenue declined at a faster rate than revenue. The strongest observable driver is the relative movement between revenue and cost of revenue.
Compared to the prior quarter, gross margin was slightly lower, with revenue and gross profit both higher but cost of revenue increasing at a faster pace. Versus the same quarter last year, gross margin was higher, as revenue and gross profit were lower but cost of revenue declined more sharply.
Monitor the trend in cost of revenue relative to revenue, as its rate of change has been the primary factor influencing gross margin direction.