IR

Ingersoll Rand Inc. stock research

Sep 30, 2025

FY2025 Q3

Ingersoll Rand (IR) Gross Margin — Quarter Ended Sep 30, 2025

Revenue increased compared to both the prior quarter and the year-ago quarter. Gross profit rose accordingly, while cost of revenue remained unchanged from the prior quarter and increased from the year-ago quarter, leading to a gross margin that was stable versus the prior quarter and slightly lower than the year-ago quarter.

Gross margin takeaway

Quarter ended Sep 30, 2025 · FY2025 Q3

Revenue increased compared to both the prior quarter and the year-ago quarter. Gross profit rose accordingly, while cost of revenue remained unchanged from the prior quarter and increased from the year-ago quarter, leading to a gross margin that was stable versus the prior quarter and slightly lower than the year-ago quarter.

  • The most notable margin driver was the stability of cost of revenue from the prior quarter, which allowed the increase in revenue to flow through to gross profit while keeping gross margin unchanged.
  • Gross margin was unchanged from the prior quarter and slightly lower than the same quarter one year earlier. Revenue and gross profit were higher than both comparison periods.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

43.7%

Gross profit

$855.2M

Revenue

$2.0B

Cost of revenue

$1.1B

Quarter-over-quarter change

+0.1 pts

Year-over-year change

-0.0 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2024$1.9B$815.4M$1.1B42.9%
Mar 31, 2025$1.7B$765.5M$951.3M44.6%
Jun 30, 2025$1.9B$824.9M$1.1B43.7%
Sep 30, 2025$2.0B$855.2M$1.1B43.7%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2025

+0.1 pts

Year-over-year change

Sep 30, 2024

-0.0 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The most notable margin driver was the stability of cost of revenue from the prior quarter, which allowed the increase in revenue to flow through to gross profit while keeping gross margin unchanged.

Gross margin was unchanged from the prior quarter and slightly lower than the same quarter one year earlier. Revenue and gross profit were higher than both comparison periods.

Monitor whether cost of revenue continues to remain stable as revenue changes.