Stanley Black & Decker, Inc. stock research
FY2025 Q4
Stanley Black & Decker (SWK) Gross Margin — Quarter Ended Jan 3, 2026
Revenue was slightly lower than the prior quarter but unchanged from the same quarter last year, while gross profit matched the prior quarter and increased year over year. The gross margin improved from both the preceding quarter and the year-ago period, reflecting a lower cost of revenue relative to revenue.
Gross margin takeaway
Quarter ended Jan 3, 2026 · FY2025 Q4
Revenue was slightly lower than the prior quarter but unchanged from the same quarter last year, while gross profit matched the prior quarter and increased year over year. The gross margin improved from both the preceding quarter and the year-ago period, reflecting a lower cost of revenue relative to revenue.
- The strongest observable margin driver is the reduction in cost of revenue compared to both prior periods, as revenue remained relatively stable. This led to higher gross profit and a higher gross margin.
- Compared to the immediately preceding quarter, revenue was slightly lower, gross profit was unchanged, and gross margin improved as cost of revenue was lower. Versus the same quarter one year earlier, revenue was flat, gross profit was higher, and gross margin strengthened with a lower cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.2%
Gross profit
$1.2B
Revenue
$3.7B
Cost of revenue
$2.5B
Quarter-over-quarter change
+1.8 pts
Year-over-year change
+2.4 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 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% |
| Jan 3, 2026 | $3.7B | $1.2B | $2.5B | 33.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 27, 2025
+1.8 pts
Year-over-year change
Dec 28, 2024
+2.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the reduction in cost of revenue compared to both prior periods, as revenue remained relatively stable. This led to higher gross profit and a higher gross margin.
Compared to the immediately preceding quarter, revenue was slightly lower, gross profit was unchanged, and gross margin improved as cost of revenue was lower. Versus the same quarter one year earlier, revenue was flat, gross profit was higher, and gross margin strengthened with a lower cost of revenue.
Monitor the trajectory of cost of revenue in future quarters, as it was the primary factor behind the margin improvement.