The Sherwin-Williams Company stock research
FY2026 Q1
The Sherwin-Williams (SHW) Gross Margin — Quarter Ended Mar 31, 2026
Revenue and gross profit both increased compared to the immediately preceding quarter and the same quarter one year earlier, while cost of revenue was stable relative to the prior quarter and higher year over year. Gross margin improved sequentially and also improved compared to the same quarter last year.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue and gross profit both increased compared to the immediately preceding quarter and the same quarter one year earlier, while cost of revenue was stable relative to the prior quarter and higher year over year. Gross margin improved sequentially and also improved compared to the same quarter last year.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue stability: revenue increased while cost of revenue remained unchanged from the prior quarter, leading to gross profit growth and margin expansion.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
49.1%
Gross profit
$2.8B
Revenue
$5.7B
Cost of revenue
$2.9B
Quarter-over-quarter change
+0.6 pts
Year-over-year change
+0.8 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 | $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% |
| Mar 31, 2026 | $5.7B | $2.8B | $2.9B | 49.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+0.6 pts
Year-over-year change
Mar 31, 2025
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue stability: revenue increased while cost of revenue remained unchanged from the prior quarter, leading to gross profit growth and margin expansion.
Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Monitor whether cost of revenue remains stable in future quarters, as its current flatness relative to revenue growth is a key factor in margin improvement.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| The Sherwin-Williams Company (SHW) | 49.1% |