TransDigm Group Incorporated stock research
FY2025 Q4
TransDigm Group (TDG) Gross Margin — Quarter Ended Sep 30, 2025
Revenue, gross profit, and cost of revenue all increased compared with both the prior quarter and the same quarter last year. Gross margin improved sequentially and year-over-year, reflecting a larger proportion of revenue flowing through to gross profit relative to cost of revenue.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q4
Revenue, gross profit, and cost of revenue all increased compared with both the prior quarter and the same quarter last year. Gross margin improved sequentially and year-over-year, reflecting a larger proportion of revenue flowing through to gross profit relative to cost of revenue.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue compared with both the prior quarter and the year-ago quarter, leading to gross margin expansion.
- Compared with the immediately preceding quarter, revenue, gross profit, and cost of revenue were higher, and gross margin improved. Compared with the same quarter one year earlier, all metrics were higher, and gross margin strengthened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.3%
Gross profit
$1.5B
Revenue
$2.4B
Cost of revenue
$967.0M
Quarter-over-quarter change
+0.8 pts
Year-over-year change
+2.7 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 | $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% |
| Sep 30, 2025 | $2.4B | $1.5B | $967.0M | 60.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 28, 2025
+0.8 pts
Year-over-year change
Sep 30, 2024
+2.7 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 growth; revenue increased more than cost of revenue compared with both the prior quarter and the year-ago quarter, leading to gross margin expansion.
Compared with the immediately preceding quarter, revenue, gross profit, and cost of revenue were higher, and gross margin improved. Compared with the same quarter one year earlier, all metrics were higher, and gross margin strengthened.
Monitor the trajectory of cost of revenue relative to revenue, as its growth rate influences the sustainability of gross margin levels.