Dow Inc. stock research
FY2025 Q4
Dow (DOW) Gross Margin — Quarter Ended Dec 31, 2025
Revenue declined compared to the prior quarter and the same quarter last year, while cost of revenue also decreased but at a slower pace. Consequently, gross profit and gross margin weakened, with the current quarter's margin lower than both comparable periods.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue declined compared to the prior quarter and the same quarter last year, while cost of revenue also decreased but at a slower pace. Consequently, gross profit and gross margin weakened, with the current quarter's margin lower than both comparable periods.
- The strongest observable driver of margin compression was the relatively faster decline in gross profit compared to cost of revenue, as revenue decreased more than cost of revenue.
- Compared to the preceding quarter, revenue and gross profit were lower, while cost of revenue was also lower. The gross margin weakened. Versus the same quarter one year earlier, all metrics were lower, with gross margin substantially lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
5.8%
Gross profit
$548.0M
Revenue
$9.5B
Cost of revenue
$8.9B
Quarter-over-quarter change
-1.5 pts
Year-over-year change
-3.2 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 | $10.4B | $671.0M | $9.8B | 6.4% |
| Jun 30, 2025 | $10.1B | $583.0M | $9.5B | 5.8% |
| Sep 30, 2025 | $10.0B | $731.0M | $9.2B | 7.3% |
| Dec 31, 2025 | $9.5B | $548.0M | $8.9B | 5.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-1.5 pts
Year-over-year change
Dec 31, 2024
-3.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of margin compression was the relatively faster decline in gross profit compared to cost of revenue, as revenue decreased more than cost of revenue.
Compared to the preceding quarter, revenue and gross profit were lower, while cost of revenue was also lower. The gross margin weakened. Versus the same quarter one year earlier, all metrics were lower, with gross margin substantially lower.
Monitor the trajectory of revenue relative to cost of revenue, as the gap between them has narrowed.