Tapestry, Inc. stock research
FY2026 Q2
Tapestry (TPR) Gross Margin — Quarter Ended Dec 27, 2025
Revenue increased compared with both the prior quarter and the same quarter last year, while gross profit also rose. Gross margin improved year-over-year but weakened slightly from the prior quarter, as cost of revenue grew at a different pace relative to revenue.
Gross margin takeaway
Quarter ended Dec 27, 2025 · FY2026 Q2
Revenue increased compared with both the prior quarter and the same quarter last year, while gross profit also rose. Gross margin improved year-over-year but weakened slightly from the prior quarter, as cost of revenue grew at a different pace relative to revenue.
- The change in cost of revenue relative to revenue is the primary observable driver of gross margin movement. Year-over-year, cost of revenue grew more slowly than revenue, lifting margin; sequentially, it grew faster, compressing margin.
- Compared with the prior quarter, revenue and gross profit were higher, but gross margin was lower. Compared with the same quarter last year, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
75.5%
Gross profit
$1.9B
Revenue
$2.5B
Cost of revenue
$614.0M
Quarter-over-quarter change
-0.8 pts
Year-over-year change
+1.1 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 |
|---|---|---|---|---|
| Mar 29, 2025 | $1.6B | $1.2B | $378.8M | 76.1% |
| Jun 28, 2025 | $1.7B | $1.3B | $408.1M | 76.3% |
| Sep 27, 2025 | $1.7B | $1.3B | $404.1M | 76.3% |
| Dec 27, 2025 | $2.5B | $1.9B | $614.0M | 75.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 27, 2025
-0.8 pts
Year-over-year change
Dec 28, 2024
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The change in cost of revenue relative to revenue is the primary observable driver of gross margin movement. Year-over-year, cost of revenue grew more slowly than revenue, lifting margin; sequentially, it grew faster, compressing margin.
Compared with the prior quarter, revenue and gross profit were higher, but gross margin was lower. Compared with the same quarter last year, revenue, gross profit, and gross margin were all higher.
Monitor the trend in cost of revenue relative to revenue, as its pace of change directly influences gross margin direction.