TE Connectivity plc stock research
FY2025 Q2
TE Connectivity (TEL) Gross Margin — Quarter Ended Mar 28, 2025
In the current quarter, revenue increased compared to both the prior quarter and the year-ago quarter, leading to higher gross profit. However, gross margin was slightly below the prior quarter's level, though above the year-ago quarter's level.
Gross margin takeaway
Quarter ended Mar 28, 2025 · FY2025 Q2
In the current quarter, revenue increased compared to both the prior quarter and the year-ago quarter, leading to higher gross profit. However, gross margin was slightly below the prior quarter's level, though above the year-ago quarter's level.
- The strongest observable margin driver was the year-over-year improvement, as revenue growth exceeded the increase in cost of revenue. Sequentially, the margin edged lower due to a slightly faster rise in cost of revenue relative to revenue.
- Compared to the prior quarter, both revenue and cost of revenue were higher, with gross profit also higher, but gross margin weakened slightly. Compared to the year-ago quarter, all metrics improved, and gross margin strengthened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.2%
Gross profit
$1.5B
Revenue
$4.1B
Cost of revenue
$2.7B
Quarter-over-quarter change
-0.2 pts
Year-over-year change
+0.9 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, 2024 | $4.0B | $1.4B | $2.6B | 34.8% |
| Sep 27, 2024 | $4.1B | $1.4B | $2.7B | 34.0% |
| Dec 27, 2024 | $3.8B | $1.4B | $2.5B | 35.5% |
| Mar 28, 2025 | $4.1B | $1.5B | $2.7B | 35.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 27, 2024
-0.2 pts
Year-over-year change
Mar 29, 2024
+0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the year-over-year improvement, as revenue growth exceeded the increase in cost of revenue. Sequentially, the margin edged lower due to a slightly faster rise in cost of revenue relative to revenue.
Compared to the prior quarter, both revenue and cost of revenue were higher, with gross profit also higher, but gross margin weakened slightly. Compared to the year-ago quarter, all metrics improved, and gross margin strengthened.
Monitor the relative growth rates of revenue and cost of revenue in subsequent quarters to assess margin sustainability.