Ingersoll Rand Inc. stock research
FY2025 Q4
Ingersoll Rand (IR) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit both increased versus the prior quarter and the same quarter last year, while cost of revenue also rose in both comparisons. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and gross profit both increased versus the prior quarter and the same quarter last year, while cost of revenue also rose in both comparisons. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter one year earlier.
- The strongest observable margin driver is the change in gross margin from the prior quarter: it was higher in the prior quarter and weakened in the current quarter, indicating that the relationship among revenue, cost of revenue, and gross profit shifted unfavorably in the current period.
- Compared to the prior quarter, revenue and gross profit were higher but gross margin was lower, meaning cost of revenue grew faster than revenue. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.6%
Gross profit
$890.7M
Revenue
$2.1B
Cost of revenue
$1.2B
Quarter-over-quarter change
-1.2 pts
Year-over-year change
-0.4 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 | $1.7B | $765.5M | $951.3M | 44.6% |
| Jun 30, 2025 | $1.9B | $824.9M | $1.1B | 43.7% |
| Sep 30, 2025 | $2.0B | $855.2M | $1.1B | 43.7% |
| Dec 31, 2025 | $2.1B | $890.7M | $1.2B | 42.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-1.2 pts
Year-over-year change
Dec 31, 2024
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in gross margin from the prior quarter: it was higher in the prior quarter and weakened in the current quarter, indicating that the relationship among revenue, cost of revenue, and gross profit shifted unfavorably in the current period.
Compared to the prior quarter, revenue and gross profit were higher but gross margin was lower, meaning cost of revenue grew faster than revenue. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.
Monitor whether cost of revenue continues to outpace revenue growth in future quarters.