Quanta Services, Inc. stock research
FY2025 Q4
Quanta Services (PWR) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter and was lower than the same quarter one year earlier.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter and was lower than the same quarter one year earlier.
- Gross profit grew in absolute terms, but the increase in cost of revenue outpaced revenue growth, leading to a lower gross margin. The strongest observable driver is the relationship between revenue and cost of revenue, where cost grew faster than revenue.
- Compared to the prior quarter, revenue was higher and gross profit was stable, while cost of revenue was higher and gross margin was lower. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, but gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
15.5%
Gross profit
$1.2B
Revenue
$7.8B
Cost of revenue
$6.6B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
-0.7 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 | $6.2B | $834.0M | $5.4B | 13.4% |
| Jun 30, 2025 | $6.8B | $1.0B | $5.8B | 14.9% |
| Sep 30, 2025 | $7.6B | $1.2B | $6.4B | 15.9% |
| Dec 31, 2025 | $7.8B | $1.2B | $6.6B | 15.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-0.4 pts
Year-over-year change
Dec 31, 2024
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew in absolute terms, but the increase in cost of revenue outpaced revenue growth, leading to a lower gross margin. The strongest observable driver is the relationship between revenue and cost of revenue, where cost grew faster than revenue.
Compared to the prior quarter, revenue was higher and gross profit was stable, while cost of revenue was higher and gross margin was lower. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, but gross margin was lower.
Monitor the trend in cost of revenue relative to revenue, as its faster growth has compressed gross margin.