International Flavors & Fragrances Inc. stock research
FY2026 Q1
International Flavors & Fragrances (IFF) Gross Margin — Quarter Ended Mar 31, 2026
Revenue was higher sequentially but lower year over year. Gross profit was higher sequentially and stable year over year, resulting in an improved gross margin compared to both periods.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue was higher sequentially but lower year over year. Gross profit was higher sequentially and stable year over year, resulting in an improved gross margin compared to both periods.
- The increase in gross profit relative to a stable cost of revenue drove the sequential gross margin improvement. Year over year, a decrease in cost of revenue supported gross margin expansion despite lower revenue.
- Gross margin strengthened sequentially from the prior quarter and also improved compared to the same quarter last year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.1%
Gross profit
$1.0B
Revenue
$2.7B
Cost of revenue
$1.7B
Quarter-over-quarter change
+2.8 pts
Year-over-year change
+0.7 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2026 | $2.7B | $1.0B | $1.7B | 37.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+2.8 pts
Year-over-year change
Mar 31, 2025
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The increase in gross profit relative to a stable cost of revenue drove the sequential gross margin improvement. Year over year, a decrease in cost of revenue supported gross margin expansion despite lower revenue.
Gross margin strengthened sequentially from the prior quarter and also improved compared to the same quarter last year.
Monitor the trend in cost of revenue as it remained unchanged sequentially but declined year over year.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| International Flavors & Fragrances Inc. (IFF) | 37.1% |