TransDigm Group Incorporated stock research
FY2025 Q3
TransDigm Group (TDG) Gross Margin — Quarter Ended Jun 28, 2025
Revenue and gross profit were higher compared to the same quarter last year, while cost of revenue also increased. Gross margin remained relatively stable, slightly higher than the prior quarter but slightly lower than the year-ago quarter.
Gross margin takeaway
Quarter ended Jun 28, 2025 · FY2025 Q3
Revenue and gross profit were higher compared to the same quarter last year, while cost of revenue also increased. Gross margin remained relatively stable, slightly higher than the prior quarter but slightly lower than the year-ago quarter.
- The gross margin was the most observable driver, showing only minor changes across the periods, with a slight sequential improvement and a slight year-over-year decline.
- Compared to the prior quarter, revenue was unchanged, gross profit was unchanged, and cost of revenue was higher, resulting in a slightly improved gross margin. Compared to the same quarter one year ago, revenue and gross profit were higher, cost of revenue was higher, and gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.5%
Gross profit
$1.3B
Revenue
$2.2B
Cost of revenue
$905.0M
Quarter-over-quarter change
+0.3 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 |
|---|---|---|---|---|
| Sep 30, 2024 | $2.2B | $1.3B | $927.0M | 57.6% |
| Dec 28, 2024 | $2.0B | $1.2B | $771.0M | 61.6% |
| Mar 29, 2025 | $2.1B | $1.3B | $876.0M | 59.3% |
| Jun 28, 2025 | $2.2B | $1.3B | $905.0M | 59.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 29, 2025
+0.3 pts
Year-over-year change
Jun 29, 2024
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin was the most observable driver, showing only minor changes across the periods, with a slight sequential improvement and a slight year-over-year decline.
Compared to the prior quarter, revenue was unchanged, gross profit was unchanged, and cost of revenue was higher, resulting in a slightly improved gross margin. Compared to the same quarter one year ago, revenue and gross profit were higher, cost of revenue was higher, and gross margin was slightly lower.
Monitor the trend in cost of revenue relative to revenue, as it increased from the prior quarter while revenue remained unchanged.