International Flavors & Fragrances Inc. stock research
FY2025 Q4
International Flavors & Fragrances (IFF) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit were lower than both the preceding quarter and the same quarter a year ago. Cost of revenue was similar to the prior quarter and down from the prior year, yet gross margin weakened.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and gross profit were lower than both the preceding quarter and the same quarter a year ago. Cost of revenue was similar to the prior quarter and down from the prior year, yet gross margin weakened.
- The primary observable factor was that cost of revenue did not decline in proportion to the decrease in revenue compared to the prior quarter, and the year-over-year reduction in cost of revenue was outpaced by the drop in gross profit.
- Compared to the immediately preceding quarter, revenue and gross profit were lower while cost of revenue was similar, resulting in a weaker gross margin. Versus the same quarter last year, revenue and gross profit were also lower, and although cost of revenue declined, gross margin decreased as well.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.4%
Gross profit
$890.0M
Revenue
$2.6B
Cost of revenue
$1.7B
Quarter-over-quarter change
-2.1 pts
Year-over-year change
-1.0 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 | $2.8B | $1.0B | $1.8B | 36.4% |
| Jun 30, 2025 | $2.8B | $1.0B | $1.7B | 37.3% |
| Sep 30, 2025 | $2.7B | $983.0M | $1.7B | 36.5% |
| Dec 31, 2025 | $2.6B | $890.0M | $1.7B | 34.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-2.1 pts
Year-over-year change
Dec 31, 2024
-1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable factor was that cost of revenue did not decline in proportion to the decrease in revenue compared to the prior quarter, and the year-over-year reduction in cost of revenue was outpaced by the drop in gross profit.
Compared to the immediately preceding quarter, revenue and gross profit were lower while cost of revenue was similar, resulting in a weaker gross margin. Versus the same quarter last year, revenue and gross profit were also lower, and although cost of revenue declined, gross margin decreased as well.
Monitor whether cost of revenue can be reduced further to align with revenue trends in future quarters.