Stanley Black & Decker, Inc. stock research
FY2025 Q3
Stanley Black & Decker (SWK) Gross Margin — Quarter Ended Sep 27, 2025
Gross margin improved significantly as gross profit increased while cost of revenue decreased, despite a slight decline in revenue. Compared to the prior quarter, the margin strengthened due to a larger reduction in cost of revenue than the fall in revenue; versus the same quarter last year, the margin also improved as gross profit rose while revenue remained stable.
Gross margin takeaway
Quarter ended Sep 27, 2025 · FY2025 Q3
Gross margin improved significantly as gross profit increased while cost of revenue decreased, despite a slight decline in revenue. Compared to the prior quarter, the margin strengthened due to a larger reduction in cost of revenue than the fall in revenue; versus the same quarter last year, the margin also improved as gross profit rose while revenue remained stable.
- The primary driver of the gross margin improvement was a decline in cost of revenue, which fell more sharply than revenue, resulting in higher gross profit and margin.
- Compared to the prior quarter, gross margin rose as cost of revenue decreased while gross profit increased, even though revenue was slightly lower. Relative to the same quarter last year, gross margin also improved, with gross profit higher on unchanged revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.4%
Gross profit
$1.2B
Revenue
$3.8B
Cost of revenue
$2.6B
Quarter-over-quarter change
+4.4 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.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 28, 2024 | $3.7B | $1.1B | $2.6B | 30.8% |
| Mar 29, 2025 | $3.7B | $1.1B | $2.6B | 29.9% |
| Jun 28, 2025 | $3.9B | $1.1B | $2.9B | 27.0% |
| Sep 27, 2025 | $3.8B | $1.2B | $2.6B | 31.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 28, 2025
+4.4 pts
Year-over-year change
Sep 28, 2024
+1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of the gross margin improvement was a decline in cost of revenue, which fell more sharply than revenue, resulting in higher gross profit and margin.
Compared to the prior quarter, gross margin rose as cost of revenue decreased while gross profit increased, even though revenue was slightly lower. Relative to the same quarter last year, gross margin also improved, with gross profit higher on unchanged revenue.
Monitor whether the cost of revenue reduction is sustainable in upcoming quarters.