PN

Pentair plc stock research

Dec 31, 2025

FY2025 Q4

Pentair (PNR) Gross Margin — Quarter Ended Dec 31, 2025

For the fourth quarter, revenue was essentially unchanged from the prior quarter, while gross profit decreased and cost of revenue increased, resulting in a lower gross margin. Compared to the same quarter last year, revenue and gross profit both increased, with gross profit rising at a faster pace, leading to an improved gross margin.

Gross margin takeaway

Quarter ended Dec 31, 2025 · FY2025 Q4

For the fourth quarter, revenue was essentially unchanged from the prior quarter, while gross profit decreased and cost of revenue increased, resulting in a lower gross margin. Compared to the same quarter last year, revenue and gross profit both increased, with gross profit rising at a faster pace, leading to an improved gross margin.

  • The strongest observable driver is the year-over-year improvement in gross margin, supported by gross profit growth exceeding revenue growth.
  • Sequentially, revenue was stable, but gross profit weakened and cost of revenue strengthened, causing gross margin to decline. Year-over-year, all three metrics were higher, with gross margin improving as gross profit outpaced revenue.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

40.4%

Gross profit

$411.8M

Revenue

$1.0B

Cost of revenue

$608.7M

Quarter-over-quarter change

-0.6 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.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2025$1.0B$403.3M$607.1M39.9%
Jun 30, 2025$1.1B$456.6M$666.5M40.7%
Sep 30, 2025$1.0B$418.6M$603.4M41.0%
Dec 31, 2025$1.0B$411.8M$608.7M40.4%

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

+1.5 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable driver is the year-over-year improvement in gross margin, supported by gross profit growth exceeding revenue growth.

Sequentially, revenue was stable, but gross profit weakened and cost of revenue strengthened, causing gross margin to decline. Year-over-year, all three metrics were higher, with gross margin improving as gross profit outpaced revenue.

Monitor the sequential increase in cost of revenue relative to revenue, as it pressured gross margin in the current quarter.