Tractor Supply Company stock research
FY2025 Q3
Tractor Supply (TSCO) Gross Margin — Quarter Ended Sep 27, 2025
Revenue in the current quarter was lower than the prior quarter but higher than the same quarter last year. Gross profit followed the same directional pattern, and gross margin improved slightly versus both periods as cost of revenue declined more than revenue on a sequential basis.
Gross margin takeaway
Quarter ended Sep 27, 2025 · FY2025 Q3
Revenue in the current quarter was lower than the prior quarter but higher than the same quarter last year. Gross profit followed the same directional pattern, and gross margin improved slightly versus both periods as cost of revenue declined more than revenue on a sequential basis.
- The improvement in gross margin was primarily driven by the cost of revenue decreasing at a faster rate than revenue when comparing the current quarter to the prior quarter, resulting in a higher margin percentage.
- Compared to the prior quarter, revenue was lower while gross margin was higher. Year over year, both revenue and gross margin increased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.4%
Gross profit
$1.4B
Revenue
$3.7B
Cost of revenue
$2.3B
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+0.1 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 |
|---|---|---|---|---|
| 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% |
| Sep 27, 2025 | $3.7B | $1.4B | $2.3B | 37.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 28, 2025
+0.4 pts
Year-over-year change
Sep 28, 2024
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was primarily driven by the cost of revenue decreasing at a faster rate than revenue when comparing the current quarter to the prior quarter, resulting in a higher margin percentage.
Compared to the prior quarter, revenue was lower while gross margin was higher. Year over year, both revenue and gross margin increased.
Monitor the impact of seasonal inventory buildup, as noted in the filing, on future cost of revenue trends.