Lennox International Inc. stock research
FY2026 Q1
Lennox International (LII) Gross Margin & Quarterly History
Explore Lennox International Inc. (LII) gross margin from 2023 through the latest reported quarter, using SEC-sourced revenue, gross profit, and direct costs.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue was essentially unchanged from the same quarter last year, while gross profit improved slightly; however, cost of revenue increased at a faster rate, causing gross margin to weaken. Compared to the immediately preceding quarter, revenue was lower and gross profit declined, with gross margin weakening as well.
- The main observable driver is that the proportion of cost of revenue relative to revenue increased compared to both the prior quarter and the year-ago quarter, which compressed margin.
- Sequential comparison shows revenue and gross profit both were lower, and gross margin weakened. Year-over-year comparison indicates revenue was stable but cost of revenue grew, leading to weaker gross margin despite a modest rise in gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
30.9%
Gross profit
$351.3M
Revenue
$1.1B
Cost of revenue
$783.8M
Quarter-over-quarter change
-1.9 pts
Year-over-year change
-0.8 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 | $1.1B | $340.9M | $731.7M | 31.8% |
| Jun 30, 2025 | $1.5B | $510.1M | $990.8M | 34.0% |
| Sep 30, 2025 | $1.4B | $468.6M | $958.2M | 32.8% |
| Mar 31, 2026 | $1.1B | $351.3M | $783.8M | 30.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-1.9 pts
Year-over-year change
Mar 31, 2025
-0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The main observable driver is that the proportion of cost of revenue relative to revenue increased compared to both the prior quarter and the year-ago quarter, which compressed margin.
Sequential comparison shows revenue and gross profit both were lower, and gross margin weakened. Year-over-year comparison indicates revenue was stable but cost of revenue grew, leading to weaker gross margin despite a modest rise in gross profit.
Monitor the trajectory of cost of revenue growth relative to revenue in upcoming quarters.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Lennox International Inc. (LII) | 30.9% |