Altria Group, Inc. stock research
FY2025 Q4
Altria Group (MO) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit both decreased from the prior quarter, while cost of revenue remained stable, resulting in a slightly lower gross margin. Compared to the same quarter last year, revenue was lower but gross profit was similar, as cost of revenue declined, leading to an improved gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and gross profit both decreased from the prior quarter, while cost of revenue remained stable, resulting in a slightly lower gross margin. Compared to the same quarter last year, revenue was lower but gross profit was similar, as cost of revenue declined, leading to an improved gross margin.
- The gross margin improved year over year, driven by a lower cost of revenue relative to revenue. The quarter-over-quarter decline in gross margin was primarily due to a proportionally larger decrease in revenue compared to gross profit.
- Compared to the prior quarter, revenue and gross profit were lower, while cost of revenue was unchanged, resulting in a slightly weakened gross margin. Compared to the same quarter last year, revenue was lower but gross profit was similar, with a lower cost of revenue, leading to an improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
62.1%
Gross profit
$3.6B
Revenue
$5.8B
Cost of revenue
$1.4B
Quarter-over-quarter change
-0.7 pts
Year-over-year change
+1.8 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 | $5.3B | $3.2B | $1.3B | 61.8% |
| Jun 30, 2025 | $6.1B | $3.9B | $1.4B | 63.1% |
| Sep 30, 2025 | $6.1B | $3.8B | $1.4B | 62.8% |
| Dec 31, 2025 | $5.8B | $3.6B | $1.4B | 62.1% |
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
+1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved year over year, driven by a lower cost of revenue relative to revenue. The quarter-over-quarter decline in gross margin was primarily due to a proportionally larger decrease in revenue compared to gross profit.
Compared to the prior quarter, revenue and gross profit were lower, while cost of revenue was unchanged, resulting in a slightly weakened gross margin. Compared to the same quarter last year, revenue was lower but gross profit was similar, with a lower cost of revenue, leading to an improved gross margin.
Monitor the trajectory of cost of revenue, which remained stable quarter over quarter but declined year over year, as its relationship with revenue will be key to future gross margin trends.