Targa Resources Corp. stock research
FY2026 Q1
Targa Resources (TRGP) Gross Margin & Quarterly History
Explore Targa Resources Corp. (TRGP) gross margin from 2023 through the latest reported quarter, using SEC-sourced revenue, gross profit, and direct costs.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue was stable compared to the prior quarter, while gross profit remained similar as cost of revenue increased slightly, causing gross margin to weaken. Compared to the same quarter last year, revenue was lower but gross profit was higher, as cost of revenue decreased substantially, leading to a significantly improved gross margin.
- The strongest observable margin driver is the reduction in cost of revenue relative to revenue, as gross margin improved sharply from the year-ago quarter despite lower revenue.
- Compared to the immediately preceding quarter, gross margin weakened slightly as cost of revenue increased while revenue was unchanged. Compared to the same quarter one year earlier, gross margin improved substantially, driven by a lower cost of revenue relative to revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.5%
Gross profit
$1.7B
Revenue
$4.1B
Cost of revenue
$2.4B
Quarter-over-quarter change
-1.6 pts
Year-over-year change
+12.9 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 30, 2025 | $4.3B | $1.8B | $2.4B | 42.8% |
| Sep 30, 2025 | $4.2B | $1.6B | $2.5B | 39.6% |
| Dec 31, 2025 | $4.1B | $1.7B | $2.3B | 43.1% |
| Mar 31, 2026 | $4.1B | $1.7B | $2.4B | 41.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
-1.6 pts
Year-over-year change
Mar 31, 2025
+12.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the reduction in cost of revenue relative to revenue, as gross margin improved sharply from the year-ago quarter despite lower revenue.
Compared to the immediately preceding quarter, gross margin weakened slightly as cost of revenue increased while revenue was unchanged. Compared to the same quarter one year earlier, gross margin improved substantially, driven by a lower cost of revenue relative to revenue.
Monitor the trend in cost of revenue, as its increase from the prior quarter contributed to the weakening of gross margin.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Targa Resources Corp. (TRGP) | 41.5% |