Tractor Supply Company stock research
FY2025 Q2
Tractor Supply (TSCO) Gross Margin — Quarter Ended Jun 28, 2025
Gross profit rose as revenue grew faster than cost of revenue, lifting gross margin above the prior quarter and the same quarter last year. The improvement in gross margin reflects the favorable relationship between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Jun 28, 2025 · FY2025 Q2
Gross profit rose as revenue grew faster than cost of revenue, lifting gross margin above the prior quarter and the same quarter last year. The improvement in gross margin reflects the favorable relationship between revenue and cost of revenue.
- The strongest observable margin driver is the higher growth rate of revenue relative to cost of revenue, which expanded gross margin both sequentially and year-over-year.
- Compared with the prior quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. Compared with the same quarter one year ago, revenue was higher, gross profit was stable, and gross margin was slightly higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.9%
Gross profit
$1.6B
Revenue
$4.4B
Cost of revenue
$2.8B
Quarter-over-quarter change
+0.7 pts
Year-over-year change
+0.3 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 28, 2024 | $3.5B | $1.3B | $2.2B | 37.2% |
| Dec 28, 2024 | $3.8B | $1.3B | $2.4B | 35.2% |
| Mar 29, 2025 | $3.5B | $1.3B | $2.2B | 36.2% |
| Jun 28, 2025 | $4.4B | $1.6B | $2.8B | 36.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 29, 2025
+0.7 pts
Year-over-year change
Jun 29, 2024
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the higher growth rate of revenue relative to cost of revenue, which expanded gross margin both sequentially and year-over-year.
Compared with the prior quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. Compared with the same quarter one year ago, revenue was higher, gross profit was stable, and gross margin was slightly higher.
Based on the filing context, the company typically builds inventory in the first and third fiscal quarters; monitoring cost of revenue relative to these seasonal patterns may provide insight into future margin trends.