Qnity Electronics, Inc. stock research
FY2025 Q4
Qnity Electronics (Q) Gross Margin — Quarter Ended Dec 31, 2025
Revenue decreased while cost of revenue declined at a faster rate, resulting in a higher gross profit and an improved gross margin compared to the prior quarter. Versus the same quarter last year, revenue increased but gross profit grew more slowly, leading to a lower gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue decreased while cost of revenue declined at a faster rate, resulting in a higher gross profit and an improved gross margin compared to the prior quarter. Versus the same quarter last year, revenue increased but gross profit grew more slowly, leading to a lower gross margin.
- The gross margin improved sequentially as cost of revenue fell more sharply than revenue. The year-over-year decline in gross margin was driven by cost of revenue rising faster than revenue.
- Compared to the prior quarter, gross margin improved. Compared to the same quarter last year, gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
46.1%
Gross profit
$549.0M
Revenue
$1.2B
Cost of revenue
$641.0M
Quarter-over-quarter change
+1.1 pts
Year-over-year change
-0.6 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 |
|---|---|---|---|---|
| Dec 31, 2024 | $1.1B | $515.0M | $586.0M | 46.8% |
| Mar 31, 2025 | $1.1B | $531.0M | $587.0M | 47.5% |
| Sep 30, 2025 | $1.3B | $575.0M | $701.0M | 45.1% |
| Dec 31, 2025 | $1.2B | $549.0M | $641.0M | 46.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+1.1 pts
Year-over-year change
Dec 31, 2024
-0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially as cost of revenue fell more sharply than revenue. The year-over-year decline in gross margin was driven by cost of revenue rising faster than revenue.
Compared to the prior quarter, gross margin improved. Compared to the same quarter last year, gross margin weakened.
Monitor the relationship between revenue and cost of revenue trends, as the year-over-year compression in gross margin suggests cost growth outpaced revenue growth.