Genuine Parts Company stock research
FY2025 Q4
Genuine Parts (GPC) Gross Margin — Quarter Ended Dec 31, 2025
Gross margin weakened compared to both the prior quarter and the same quarter last year, as revenue declined from the prior quarter while cost of revenue remained stable, and revenue increased from a year ago but cost of revenue grew at a faster pace. Gross profit decreased quarter over quarter and was flat year over year, reflecting the shifting relationship between revenue and costs.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Gross margin weakened compared to both the prior quarter and the same quarter last year, as revenue declined from the prior quarter while cost of revenue remained stable, and revenue increased from a year ago but cost of revenue grew at a faster pace. Gross profit decreased quarter over quarter and was flat year over year, reflecting the shifting relationship between revenue and costs.
- The most observable driver is the widening gap between revenue and cost of revenue growth rates, particularly the year-over-year increase in cost of revenue that outpaced revenue growth, exerting downward pressure on gross margin.
- Compared to the prior quarter, revenue and gross profit were lower while cost of revenue was stable, resulting in a weaker gross margin. Versus the same quarter last year, revenue was higher and gross profit was similar, but cost of revenue was higher, leading to a slightly lower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.0%
Gross profit
$2.1B
Revenue
$6.0B
Cost of revenue
$3.9B
Quarter-over-quarter change
-2.4 pts
Year-over-year change
-0.9 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 | $5.9B | $2.2B | $3.7B | 37.1% |
| Jun 30, 2025 | $6.2B | $2.3B | $3.8B | 37.7% |
| Sep 30, 2025 | $6.3B | $2.3B | $3.9B | 37.4% |
| Dec 31, 2025 | $6.0B | $2.1B | $3.9B | 35.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-2.4 pts
Year-over-year change
Dec 31, 2024
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver is the widening gap between revenue and cost of revenue growth rates, particularly the year-over-year increase in cost of revenue that outpaced revenue growth, exerting downward pressure on gross margin.
Compared to the prior quarter, revenue and gross profit were lower while cost of revenue was stable, resulting in a weaker gross margin. Versus the same quarter last year, revenue was higher and gross profit was similar, but cost of revenue was higher, leading to a slightly lower gross margin.
Monitor the trend in cost of revenue relative to revenue to assess whether the margin compression continues.