TE Connectivity plc stock research
FY2025 Q4
TE Connectivity (TEL) Gross Margin — Quarter Ended Sep 26, 2025
Revenue and gross profit both increased relative to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin was stable compared with the prior quarter and improved compared with the year-ago period.
Gross margin takeaway
Quarter ended Sep 26, 2025 · FY2025 Q4
Revenue and gross profit both increased relative to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin was stable compared with the prior quarter and improved compared with the year-ago period.
- Gross profit grew more than cost of revenue on a year-over-year basis, supporting the margin improvement. The relationship between revenue and cost of revenue remained consistent with the prior quarter, keeping gross margin essentially stable.
- Compared with the immediately preceding quarter, revenue and gross profit were higher and cost of revenue was higher, while gross margin was slightly lower. Compared with the same quarter one year earlier, all three metrics were higher and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.0%
Gross profit
$1.7B
Revenue
$4.7B
Cost of revenue
$3.1B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
+1.0 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 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% |
| Sep 26, 2025 | $4.7B | $1.7B | $3.1B | 35.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 27, 2025
-0.3 pts
Year-over-year change
Sep 27, 2024
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew more than cost of revenue on a year-over-year basis, supporting the margin improvement. The relationship between revenue and cost of revenue remained consistent with the prior quarter, keeping gross margin essentially stable.
Compared with the immediately preceding quarter, revenue and gross profit were higher and cost of revenue was higher, while gross margin was slightly lower. Compared with the same quarter one year earlier, all three metrics were higher and gross margin was higher.
Monitor the trajectory of cost of revenue relative to revenue, as a sharper rise in costs could pressure gross margin.