International Paper Company stock research
FY2026 Q1
International Paper (IP) Gross Margin — Quarter Ended Mar 31, 2026
Revenue was unchanged from the prior quarter, while cost of revenue rose and gross profit fell, causing gross margin to weaken. Compared to the same quarter a year earlier, revenue and gross profit both increased, with gross margin improving.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue was unchanged from the prior quarter, while cost of revenue rose and gross profit fell, causing gross margin to weaken. Compared to the same quarter a year earlier, revenue and gross profit both increased, with gross margin improving.
- The most notable change is the increase in cost of revenue relative to revenue compared to the prior quarter, which directly reduced gross profit and margin.
- Compared to the prior quarter, gross margin weakened as gross profit decreased despite flat revenue. Compared to the same quarter a year ago, gross margin improved as revenue and gross profit grew faster than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
28.9%
Gross profit
$1.7B
Revenue
$6.0B
Cost of revenue
$4.2B
Quarter-over-quarter change
+15.4 pts
Year-over-year change
+1.2 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 | $5.3B | $1.5B | $3.8B | 27.7% |
| Jun 30, 2025 | $7.4B | $2.5B | $4.9B | 34.1% |
| Sep 30, 2025 | $5.0B | $673.0M | $4.3B | 13.6% |
| Mar 31, 2026 | $6.0B | $1.7B | $4.2B | 28.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+15.4 pts
Year-over-year change
Mar 31, 2025
+1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable change is the increase in cost of revenue relative to revenue compared to the prior quarter, which directly reduced gross profit and margin.
Compared to the prior quarter, gross margin weakened as gross profit decreased despite flat revenue. Compared to the same quarter a year ago, gross margin improved as revenue and gross profit grew faster than cost of revenue.
Monitor working capital components, which showed a net cash outflow in the current quarter but improved dramatically from the prior year, as this may signal changes in inventory or receivables management.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| International Paper Company (IP) | 28.9% |