Brown-Forman Corporation stock research
FY2026 Q3
Brown-Forman (BF-B) Gross Margin — Quarter Ended Jan 31, 2026
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was stable relative to a year ago and slightly lower than the preceding quarter. Gross margin improved versus both comparison periods, reflecting a favorable relationship between revenue growth and cost control.
Gross margin takeaway
Quarter ended Jan 31, 2026 · FY2026 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was stable relative to a year ago and slightly lower than the preceding quarter. Gross margin improved versus both comparison periods, reflecting a favorable relationship between revenue growth and cost control.
- The strongest observable margin driver is the increase in gross profit relative to cost of revenue, as gross profit rose while cost of revenue remained unchanged year over year and decreased sequentially. This indicates that revenue growth outpaced any cost increases.
- Compared to the immediately preceding quarter, gross margin improved as revenue grew faster than cost of revenue. Versus the same quarter one year earlier, gross margin also strengthened, with revenue higher and cost of revenue unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.6%
Gross profit
$640.0M
Revenue
$1.1B
Cost of revenue
$416.0M
Quarter-over-quarter change
+1.2 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 |
|---|---|---|---|---|
| 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% |
| Jan 31, 2026 | $1.1B | $640.0M | $416.0M | 60.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 31, 2025
+1.2 pts
Year-over-year change
Jan 31, 2025
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in gross profit relative to cost of revenue, as gross profit rose while cost of revenue remained unchanged year over year and decreased sequentially. This indicates that revenue growth outpaced any cost increases.
Compared to the immediately preceding quarter, gross margin improved as revenue grew faster than cost of revenue. Versus the same quarter one year earlier, gross margin also strengthened, with revenue higher and cost of revenue unchanged.
Monitor whether cost of revenue remains stable in future quarters, as it was unchanged year over year and slightly lower sequentially, which supported margin expansion.