TransDigm Group Incorporated stock research
FY2026 Q2
TransDigm Group (TDG) Gross Margin — Quarter Ended Mar 28, 2026
Revenue, gross profit, and cost of revenue all increased compared to the previous quarter and the same quarter last year. Gross margin improved slightly, remaining near the same level.
Gross margin takeaway
Quarter ended Mar 28, 2026 · FY2026 Q2
Revenue, gross profit, and cost of revenue all increased compared to the previous quarter and the same quarter last year. Gross margin improved slightly, remaining near the same level.
- The strongest observable driver is the consistent relationship between revenue and cost of revenue, with both growing at similar rates, keeping gross margin stable.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, while cost of revenue also increased, resulting in a slightly higher gross margin. Versus the same quarter one year earlier, all metrics were higher, with gross margin marginally improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.4%
Gross profit
$1.5B
Revenue
$2.5B
Cost of revenue
$1.0B
Quarter-over-quarter change
+0.2 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 |
|---|---|---|---|---|
| Jun 28, 2025 | $2.2B | $1.3B | $905.0M | 59.5% |
| Sep 30, 2025 | $2.4B | $1.5B | $967.0M | 60.3% |
| Dec 27, 2025 | $2.3B | $1.4B | $933.0M | 59.2% |
| Mar 28, 2026 | $2.5B | $1.5B | $1.0B | 59.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 27, 2025
+0.2 pts
Year-over-year change
Mar 29, 2025
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the consistent relationship between revenue and cost of revenue, with both growing at similar rates, keeping gross margin stable.
Compared to the immediately preceding quarter, revenue and gross profit were higher, while cost of revenue also increased, resulting in a slightly higher gross margin. Versus the same quarter one year earlier, all metrics were higher, with gross margin marginally improved.
Monitor inventory levels, which increased from the prior fiscal year-end as shown in the balance sheet.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| TransDigm Group Incorporated (TDG) | 59.4% |