Johnson Controls International plc stock research
FY2026 Q1
Johnson Controls International (JCI) Gross Margin — Quarter Ended Dec 31, 2025
Revenue decreased sequentially while increasing year over year, leading to a gross profit that moved in the same direction. The gross margin weakened from the prior quarter but improved from the same quarter last year.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2026 Q1
Revenue decreased sequentially while increasing year over year, leading to a gross profit that moved in the same direction. The gross margin weakened from the prior quarter but improved from the same quarter last year.
- The gross margin sequentially declined as cost of revenue fell less proportionally than revenue; year over year, the margin gained marginally with a higher proportion of gross profit relative to revenue.
- Compared to the previous quarter, revenue and gross profit were lower, and gross margin was slightly weaker. Versus the same quarter a 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
35.8%
Gross profit
$2.1B
Revenue
$5.8B
Cost of revenue
$3.7B
Quarter-over-quarter change
-0.7 pts
Year-over-year change
+0.3 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 | $5.7B | $2.1B | $3.6B | 36.5% |
| Jun 30, 2025 | $6.1B | $2.2B | $3.8B | 37.1% |
| Sep 30, 2025 | $6.4B | $2.4B | $4.1B | 36.5% |
| Dec 31, 2025 | $5.8B | $2.1B | $3.7B | 35.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-0.7 pts
Year-over-year change
Dec 31, 2024
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin sequentially declined as cost of revenue fell less proportionally than revenue; year over year, the margin gained marginally with a higher proportion of gross profit relative to revenue.
Compared to the previous quarter, revenue and gross profit were lower, and gross margin was slightly weaker. Versus the same quarter a year earlier, revenue, gross profit, and gross margin were all higher.
Inventories increased from the end of the prior fiscal year, which may be monitored for any impact on working capital trends.