PACCAR Inc stock research
FY2025 Q3
PACCAR (PCAR) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened slightly from the prior quarter and more notably from a year ago, reflecting that cost of revenue fell less than revenue relative to gross profit.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened slightly from the prior quarter and more notably from a year ago, reflecting that cost of revenue fell less than revenue relative to gross profit.
- The relationship among revenue, cost of revenue, and gross profit shows that the decline in gross profit was proportionally larger than the decline in revenue, which compressed gross margin. The strongest observable driver is the relative movement of cost of revenue, which did not decrease as much as revenue.
- Compared to the prior quarter, revenue and gross profit were lower, and gross margin was slightly lower. Compared to the same quarter one year earlier, revenue and gross profit were substantially lower, and gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
19.9%
Gross profit
$1.3B
Revenue
$6.7B
Cost of revenue
$5.3B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
-2.1 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 |
|---|---|---|---|---|
| Dec 31, 2024 | $7.9B | $1.7B | $6.2B | 21.6% |
| Mar 31, 2025 | $7.4B | $1.6B | $5.9B | 20.8% |
| Jun 30, 2025 | $7.5B | $1.5B | $6.0B | 20.2% |
| Sep 30, 2025 | $6.7B | $1.3B | $5.3B | 19.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-0.3 pts
Year-over-year change
Sep 30, 2024
-2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship among revenue, cost of revenue, and gross profit shows that the decline in gross profit was proportionally larger than the decline in revenue, which compressed gross margin. The strongest observable driver is the relative movement of cost of revenue, which did not decrease as much as revenue.
Compared to the prior quarter, revenue and gross profit were lower, and gross margin was slightly lower. Compared to the same quarter one year earlier, revenue and gross profit were substantially lower, and gross margin was lower.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess whether gross margin stabilizes or continues to weaken.