The Sherwin-Williams Company stock research
FY2025 Q4
The Sherwin-Williams (SHW) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit both decreased from the prior quarter, while cost of revenue declined at a slightly slower pace, resulting in a modest gross margin weakening. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was also higher, and gross margin was nearly stable.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and gross profit both decreased from the prior quarter, while cost of revenue declined at a slightly slower pace, resulting in a modest gross margin weakening. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was also higher, and gross margin was nearly stable.
- The relationship between revenue and cost of revenue drove the gross margin change: revenue fell more sharply than cost of revenue quarter over quarter, compressing margin. Year over year, both revenue and cost of revenue increased, with gross profit rising slightly faster, supporting a stable margin.
- Compared to the immediately preceding quarter, gross margin was lower, reflecting a weakening in profitability from revenue relative to cost of revenue. Compared to the same quarter one year earlier, gross margin was slightly lower but broadly stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
48.5%
Gross profit
$2.7B
Revenue
$5.6B
Cost of revenue
$2.9B
Quarter-over-quarter change
-0.7 pts
Year-over-year change
-0.1 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 |
|---|---|---|---|---|
| Mar 31, 2025 | $5.3B | $2.6B | $2.7B | 48.2% |
| Jun 30, 2025 | $6.3B | $3.1B | $3.2B | 49.4% |
| Sep 30, 2025 | $6.4B | $3.1B | $3.2B | 49.2% |
| Dec 31, 2025 | $5.6B | $2.7B | $2.9B | 48.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-0.7 pts
Year-over-year change
Dec 31, 2024
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue drove the gross margin change: revenue fell more sharply than cost of revenue quarter over quarter, compressing margin. Year over year, both revenue and cost of revenue increased, with gross profit rising slightly faster, supporting a stable margin.
Compared to the immediately preceding quarter, gross margin was lower, reflecting a weakening in profitability from revenue relative to cost of revenue. Compared to the same quarter one year earlier, gross margin was slightly lower but broadly stable.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters, as the current quarter showed cost of revenue declining less than revenue sequentially.