Tapestry, Inc. stock research
FY2026 Q3
Tapestry (TPR) Gross Margin — Quarter Ended Mar 28, 2026
Revenue decreased from the immediately preceding quarter and increased from the same quarter one year earlier. Gross profit followed the same directional pattern as revenue, while cost of revenue declined both sequentially and year-over-year, resulting in a gross margin that improved from the prior quarter and the year-ago period.
Gross margin takeaway
Quarter ended Mar 28, 2026 · FY2026 Q3
Revenue decreased from the immediately preceding quarter and increased from the same quarter one year earlier. Gross profit followed the same directional pattern as revenue, while cost of revenue declined both sequentially and year-over-year, resulting in a gross margin that improved from the prior quarter and the year-ago period.
- The relationship between cost of revenue and revenue is the most observable driver of gross margin. With revenue declining sequentially but cost of revenue declining at a faster rate, gross margin expanded.
- Compared to the immediately preceding quarter, revenue was lower but gross margin was higher. Compared to the same quarter one year prior, 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
76.9%
Gross profit
$1.5B
Revenue
$1.9B
Cost of revenue
$444.1M
Quarter-over-quarter change
+1.4 pts
Year-over-year change
+0.8 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 | $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% |
| Mar 28, 2026 | $1.9B | $1.5B | $444.1M | 76.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 27, 2025
+1.4 pts
Year-over-year change
Mar 29, 2025
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between cost of revenue and revenue is the most observable driver of gross margin. With revenue declining sequentially but cost of revenue declining at a faster rate, gross margin expanded.
Compared to the immediately preceding quarter, revenue was lower but gross margin was higher. Compared to the same quarter one year prior, revenue, gross profit, and gross margin were all higher.
Monitor the relationship between revenue and cost of revenue in upcoming quarters, as the margin expansion was driven by cost of revenue declining faster than revenue.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Tapestry, Inc. (TPR) | 76.9% |