Packaging Corporation of America stock research
FY2026 Q1
Packaging Corporation of America (PKG) Gross Margin — Quarter Ended Mar 31, 2026
In the current quarter, revenue was stable compared to the previous quarter, while gross profit increased slightly, leading to a modest improvement in gross margin. However, compared to the same quarter last year, revenue was higher but gross profit was slightly lower, resulting in a lower gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
In the current quarter, revenue was stable compared to the previous quarter, while gross profit increased slightly, leading to a modest improvement in gross margin. However, compared to the same quarter last year, revenue was higher but gross profit was slightly lower, resulting in a lower gross margin.
- The sequential improvement in gross margin was driven by a slight increase in gross profit on stable revenue. The year-over-year decline in gross margin was due to a larger increase in cost of revenue relative to revenue.
- Compared to the previous quarter, gross margin improved slightly as gross profit increased while revenue remained stable. Compared to the same quarter last year, gross margin weakened as revenue grew but gross profit declined modestly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
19.1%
Gross profit
$452.9M
Revenue
$2.4B
Cost of revenue
$1.9B
Quarter-over-quarter change
+0.2 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 |
|---|---|---|---|---|
| Jun 30, 2025 | $2.2B | $483.0M | $1.7B | 22.2% |
| Sep 30, 2025 | $2.3B | $504.3M | $1.8B | 21.8% |
| Dec 31, 2025 | $2.4B | $447.5M | $1.9B | 18.9% |
| Mar 31, 2026 | $2.4B | $452.9M | $1.9B | 19.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+0.2 pts
Year-over-year change
Mar 31, 2025
-2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was driven by a slight increase in gross profit on stable revenue. The year-over-year decline in gross margin was due to a larger increase in cost of revenue relative to revenue.
Compared to the previous quarter, gross margin improved slightly as gross profit increased while revenue remained stable. Compared to the same quarter last year, gross margin weakened as revenue grew but gross profit declined modestly.
Monitor the trend in cost of revenue, as its movement relative to revenue has a significant impact on gross margin.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Packaging Corporation of America (PKG) | 19.1% |