PACCAR Inc stock research
FY2025 Q4
PACCAR (PCAR) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit both decreased compared to the same quarter one year earlier, while cost of revenue also declined. Gross margin weakened relative to both the prior quarter and the year-ago quarter, reflecting a higher proportion of cost of revenue relative to revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and gross profit both decreased compared to the same quarter one year earlier, while cost of revenue also declined. Gross margin weakened relative to both the prior quarter and the year-ago quarter, reflecting a higher proportion of cost of revenue relative to revenue.
- The decline in gross margin from the prior quarter and the year-ago quarter was driven by cost of revenue decreasing at a slower pace than revenue, resulting in a lower margin.
- Compared to the immediately preceding quarter, revenue was slightly higher but gross profit was stable, while cost of revenue increased, leading to a lower gross margin. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were all lower, with gross margin also lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
19.3%
Gross profit
$1.3B
Revenue
$6.8B
Cost of revenue
$5.5B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-2.4 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 | $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% |
| Dec 31, 2025 | $6.8B | $1.3B | $5.5B | 19.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-0.6 pts
Year-over-year change
Dec 31, 2024
-2.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross margin from the prior quarter and the year-ago quarter was driven by cost of revenue decreasing at a slower pace than revenue, resulting in a lower margin.
Compared to the immediately preceding quarter, revenue was slightly higher but gross profit was stable, while cost of revenue increased, leading to a lower gross margin. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were all lower, with gross margin also lower.
Monitor the trajectory of cost of revenue relative to revenue, as its slower decline has compressed gross margin.