Cummins Inc. stock research
FY2025 Q4
Cummins (CMI) Gross Margin — Quarter Ended Dec 31, 2025
Revenue increased compared with both the prior quarter and the same quarter last year, while cost of revenue also rose. Gross profit was unchanged from the year-ago quarter but slightly lower than the previous quarter, resulting in a gross margin that weakened relative to both comparison periods.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue increased compared with both the prior quarter and the same quarter last year, while cost of revenue also rose. Gross profit was unchanged from the year-ago quarter but slightly lower than the previous quarter, resulting in a gross margin that weakened relative to both comparison periods.
- The gross margin decline was driven by cost of revenue increasing at a faster rate than revenue. This unfavorable relationship was the strongest observable factor in the margin change.
- Compared with the prior quarter, revenue was higher but gross profit was slightly lower, while cost of revenue increased more sharply, leading to a weaker gross margin. Versus the same quarter last year, revenue was higher and cost of revenue was also higher, yet gross profit remained stable, resulting in a weakened gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
22.9%
Gross profit
$2.0B
Revenue
$8.5B
Cost of revenue
$6.6B
Quarter-over-quarter change
-2.7 pts
Year-over-year change
-1.2 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 31, 2025 | $8.2B | $2.2B | $6.0B | 26.4% |
| Jun 30, 2025 | $8.6B | $2.3B | $6.4B | 26.4% |
| Sep 30, 2025 | $8.3B | $2.1B | $6.2B | 25.6% |
| Dec 31, 2025 | $8.5B | $2.0B | $6.6B | 22.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-2.7 pts
Year-over-year change
Dec 31, 2024
-1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin decline was driven by cost of revenue increasing at a faster rate than revenue. This unfavorable relationship was the strongest observable factor in the margin change.
Compared with the prior quarter, revenue was higher but gross profit was slightly lower, while cost of revenue increased more sharply, leading to a weaker gross margin. Versus the same quarter last year, revenue was higher and cost of revenue was also higher, yet gross profit remained stable, resulting in a weakened gross margin.
Monitor whether cost of revenue growth continues to outpace revenue growth in upcoming periods.