The Procter & Gamble Company stock research
FY2026 Q3
The Procter & Gamble (PG) Gross Margin — Quarter Ended Mar 31, 2026
Revenue declined from the prior quarter while cost of revenue decreased only slightly, causing gross profit to fall and gross margin to weaken. Compared to the same quarter last year, revenue grew but cost of revenue grew at a faster pace, leading to a lower gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q3
Revenue declined from the prior quarter while cost of revenue decreased only slightly, causing gross profit to fall and gross margin to weaken. Compared to the same quarter last year, revenue grew but cost of revenue grew at a faster pace, leading to a lower gross margin.
- The strongest observable margin driver is the disproportionate movement of cost of revenue relative to revenue. In the current quarter, cost of revenue declined less than revenue sequentially and rose more than revenue year-over-year, compressing gross margin.
- Sequentially, revenue and gross profit both decreased, with gross profit falling more sharply, resulting in a weaker gross margin. Year-over-year, revenue and gross profit both increased, but gross profit growth lagged, leading to a lower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
49.5%
Gross profit
$10.5B
Revenue
$21.2B
Cost of revenue
$10.7B
Quarter-over-quarter change
-1.7 pts
Year-over-year change
-1.5 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 |
|---|---|---|---|---|
| Jun 30, 2025 | $20.9B | $10.3B | $10.6B | 49.1% |
| Sep 30, 2025 | $22.4B | $11.5B | $10.9B | 51.4% |
| Dec 31, 2025 | $22.2B | $11.4B | $10.8B | 51.2% |
| Mar 31, 2026 | $21.2B | $10.5B | $10.7B | 49.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
-1.7 pts
Year-over-year change
Mar 31, 2025
-1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the disproportionate movement of cost of revenue relative to revenue. In the current quarter, cost of revenue declined less than revenue sequentially and rose more than revenue year-over-year, compressing gross margin.
Sequentially, revenue and gross profit both decreased, with gross profit falling more sharply, resulting in a weaker gross margin. Year-over-year, revenue and gross profit both increased, but gross profit growth lagged, leading to a lower gross margin.
Monitor the trend in the ratio of cost of revenue to revenue in upcoming quarters.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| The Procter & Gamble Company (PG) | 49.5% |