Targa Resources Corp. stock research
FY2025 Q2
Targa Resources (TRGP) Gross Margin — Quarter Ended Jun 30, 2025
Revenue declined from the prior quarter but rose compared to the same quarter last year. Gross profit increased on both comparisons, while cost of revenue decreased sequentially and increased year-over-year, resulting in an improved gross margin for the current quarter.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue declined from the prior quarter but rose compared to the same quarter last year. Gross profit increased on both comparisons, while cost of revenue decreased sequentially and increased year-over-year, resulting in an improved gross margin for the current quarter.
- The sequential improvement in gross margin was driven by a larger reduction in cost of revenue relative to the decline in revenue. The year-over-year improvement reflects a higher gross profit despite a higher cost of revenue.
- Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.8%
Gross profit
$1.8B
Revenue
$4.3B
Cost of revenue
$2.4B
Quarter-over-quarter change
+14.2 pts
Year-over-year change
+4.5 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 30, 2024 | $3.9B | $1.5B | $2.4B | 38.6% |
| Dec 31, 2024 | $4.4B | $1.5B | $2.9B | 33.7% |
| Mar 31, 2025 | $4.6B | $1.3B | $3.3B | 28.6% |
| Jun 30, 2025 | $4.3B | $1.8B | $2.4B | 42.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+14.2 pts
Year-over-year change
Jun 30, 2024
+4.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was driven by a larger reduction in cost of revenue relative to the decline in revenue. The year-over-year improvement reflects a higher gross profit despite a higher cost of revenue.
Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin also improved.
Monitor the trend in cost of revenue relative to revenue in future quarters.