Tractor Supply Company stock research
FY2025 Q4
Tractor Supply (TSCO) Gross Margin — Quarter Ended Dec 27, 2025
Revenue increased compared to the prior quarter and the same quarter last year. Gross profit was stable sequentially and higher year over year, while cost of revenue also rose, leading to a gross margin that weakened from the prior quarter and was broadly similar to the year-ago level. The company describes itself as the largest U.S. rural lifestyle retailer, operating stores and online platforms including an acquired pet pharmacy.
Gross margin takeaway
Quarter ended Dec 27, 2025 · FY2025 Q4
Revenue increased compared to the prior quarter and the same quarter last year. Gross profit was stable sequentially and higher year over year, while cost of revenue also rose, leading to a gross margin that weakened from the prior quarter and was broadly similar to the year-ago level. The company describes itself as the largest U.S. rural lifestyle retailer, operating stores and online platforms including an acquired pet pharmacy.
- The strongest observable margin driver is the relationship between cost of revenue and revenue. In the current quarter, cost of revenue grew faster than revenue, causing the gross margin to decline from the prior quarter.
- Compared to the immediately preceding quarter, revenue was higher, cost of revenue was higher, gross profit was unchanged, and gross margin weakened. Compared to the same quarter one year earlier, revenue was higher, cost of revenue was higher, gross profit was higher, and gross margin was slightly lower but broadly stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.1%
Gross profit
$1.4B
Revenue
$3.9B
Cost of revenue
$2.5B
Quarter-over-quarter change
-2.2 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 |
|---|---|---|---|---|
| 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% |
| Dec 27, 2025 | $3.9B | $1.4B | $2.5B | 35.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 27, 2025
-2.2 pts
Year-over-year change
Dec 28, 2024
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between cost of revenue and revenue. In the current quarter, cost of revenue grew faster than revenue, causing the gross margin to decline from the prior quarter.
Compared to the immediately preceding quarter, revenue was higher, cost of revenue was higher, gross profit was unchanged, and gross margin weakened. Compared to the same quarter one year earlier, revenue was higher, cost of revenue was higher, gross profit was higher, and gross margin was slightly lower but broadly stable.
Monitor the trend in cost of revenue growth relative to revenue growth, as it directly influences gross margin.