Barnes & Noble Education, Inc. stock research
FY2026 Q3
Barnes & Noble Education (BNED) Gross Margin — Quarter Ended Jan 31, 2026
Revenue, gross profit, and cost of revenue each declined compared to the prior quarter while rising relative to the year-ago quarter. Gross margin weakened in both comparisons, reflecting a higher share of cost of revenue within total revenue.
Gross margin takeaway
Quarter ended Jan 31, 2026 · FY2026 Q3
Revenue, gross profit, and cost of revenue each declined compared to the prior quarter while rising relative to the year-ago quarter. Gross margin weakened in both comparisons, reflecting a higher share of cost of revenue within total revenue.
- The strongest observable margin driver is the relationship between revenue and cost of revenue. The gross margin declined as cost of revenue consumed a larger portion of revenue in the current period relative to both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, revenue and gross profit were lower, and the gross margin weakened. Relative to the same quarter one year earlier, revenue and gross profit were higher, yet the gross margin still weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.4%
Gross profit
$96.1M
Revenue
$471.8M
Cost of revenue
$419.0M
Quarter-over-quarter change
-1.3 pts
Year-over-year change
-2.0 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 25, 2025 | $419.7M | $93.8M | $369.1M | 22.3% |
| Aug 2, 2025 | $274.2M | $55.4M | $232.8M | 20.2% |
| Nov 1, 2025 | $598.2M | $129.8M | $514.6M | 21.7% |
| Jan 31, 2026 | $471.8M | $96.1M | $419.0M | 20.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 1, 2025
-1.3 pts
Year-over-year change
Jan 25, 2025
-2.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue. The gross margin declined as cost of revenue consumed a larger portion of revenue in the current period relative to both the prior quarter and the year-ago quarter.
Compared to the prior quarter, revenue and gross profit were lower, and the gross margin weakened. Relative to the same quarter one year earlier, revenue and gross profit were higher, yet the gross margin still weakened.
Monitor the company's affordable access course material programs, as described in its business overview, given their potential influence on the mix of revenue and cost of revenue.