IDEX Corporation stock research
FY2025 Q3
IDEX (IEX) Gross Margin — Quarter Ended Sep 30, 2025
Revenue grew relative to both the prior quarter and the same quarter last year, while gross profit expanded against the year-ago period but narrowed slightly versus the preceding quarter. Cost of revenue increased in both comparisons, leading gross margin to weaken sequentially but improve year-over-year.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue grew relative to both the prior quarter and the same quarter last year, while gross profit expanded against the year-ago period but narrowed slightly versus the preceding quarter. Cost of revenue increased in both comparisons, leading gross margin to weaken sequentially but improve year-over-year.
- The sequential decline in gross margin was driven by a proportionally larger increase in cost of revenue relative to revenue, whereas the year-over-year improvement reflected slower cost growth than revenue expansion.
- Compared to the immediately preceding quarter, gross margin weakened as cost of revenue rose at a faster pace than revenue. Relative to the same quarter one year earlier, gross margin improved, with revenue growth outpacing cost growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.5%
Gross profit
$390.6M
Revenue
$878.7M
Cost of revenue
$488.1M
Quarter-over-quarter change
-0.9 pts
Year-over-year change
+0.1 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 |
|---|---|---|---|---|
| Dec 31, 2024 | $862.9M | $367.1M | $495.8M | 42.5% |
| Mar 31, 2025 | $814.3M | $368.9M | $445.4M | 45.3% |
| Jun 30, 2025 | $865.4M | $392.2M | $473.2M | 45.3% |
| Sep 30, 2025 | $878.7M | $390.6M | $488.1M | 44.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-0.9 pts
Year-over-year change
Sep 30, 2024
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential decline in gross margin was driven by a proportionally larger increase in cost of revenue relative to revenue, whereas the year-over-year improvement reflected slower cost growth than revenue expansion.
Compared to the immediately preceding quarter, gross margin weakened as cost of revenue rose at a faster pace than revenue. Relative to the same quarter one year earlier, gross margin improved, with revenue growth outpacing cost growth.
Monitor the trajectory of cost of revenue growth relative to revenue, as the sequential margin compression highlights cost sensitivity.