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Dover Corporation stock research

Sep 30, 2025

FY2025 Q3

Dover (DOV) Gross Margin — Quarter Ended Sep 30, 2025

Revenue increased while cost of revenue remained at a comparable level, resulting in higher gross profit and an improved gross margin. The filing discusses risk factors, management's analysis, and liquidity including free cash flow.

Gross margin takeaway

Quarter ended Sep 30, 2025 · FY2025 Q3

Revenue increased while cost of revenue remained at a comparable level, resulting in higher gross profit and an improved gross margin. The filing discusses risk factors, management's analysis, and liquidity including free cash flow.

  • The primary driver of the margin improvement was revenue growth, as cost of revenue did not increase proportionally, allowing gross profit to rise.
  • Compared to the prior quarter, gross margin improved. On a year-over-year basis, gross margin also improved, reflecting higher revenue and gross profit relative to the same period last year.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

40.1%

Gross profit

$833.6M

Revenue

$2.1B

Cost of revenue

$1.2B

Quarter-over-quarter change

+0.2 pts

Year-over-year change

+1.6 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2024$1.9B$745.7M$1.2B38.6%
Mar 31, 2025$1.9B$745.5M$1.1B40.0%
Jun 30, 2025$2.0B$818.3M$1.2B39.9%
Sep 30, 2025$2.1B$833.6M$1.2B40.1%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2025

+0.2 pts

Year-over-year change

Sep 30, 2024

+1.6 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The primary driver of the margin improvement was revenue growth, as cost of revenue did not increase proportionally, allowing gross profit to rise.

Compared to the prior quarter, gross margin improved. On a year-over-year basis, gross margin also improved, reflecting higher revenue and gross profit relative to the same period last year.

Monitor whether cost of revenue trends remain stable or begin to increase, as this would affect future gross margin.