TE Connectivity plc stock research
FY2025 Q3
TE Connectivity (TEL) Gross Margin — Quarter Ended Jun 27, 2025
Revenue, gross profit, and cost of revenue all increased compared to the prior quarter and the same quarter last year. Gross margin improved slightly relative to both periods, indicating that the proportion of revenue retained after cost of revenue was higher.
Gross margin takeaway
Quarter ended Jun 27, 2025 · FY2025 Q3
Revenue, gross profit, and cost of revenue all increased compared to the prior quarter and the same quarter last year. Gross margin improved slightly relative to both periods, indicating that the proportion of revenue retained after cost of revenue was higher.
- The improvement in gross margin was supported by a larger increase in gross profit relative to the increase in revenue when compared to the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were higher, and gross margin improved slightly. Compared to the same quarter one year earlier, all metrics were higher, and gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.3%
Gross profit
$1.6B
Revenue
$4.5B
Cost of revenue
$2.9B
Quarter-over-quarter change
+0.1 pts
Year-over-year change
+0.5 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 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% |
| Jun 27, 2025 | $4.5B | $1.6B | $2.9B | 35.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 28, 2025
+0.1 pts
Year-over-year change
Jun 28, 2024
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was supported by a larger increase in gross profit relative to the increase in revenue when compared to the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were higher, and gross margin improved slightly. Compared to the same quarter one year earlier, all metrics were higher, and gross margin also improved.
Monitor the trend in cost of revenue relative to revenue, as the slight margin improvement may be sensitive to changes in cost growth.