Trane Technologies plc stock research
FY2025 Q3
Trane Technologies (TT) Gross Margin — Quarter Ended Sep 30, 2025
Revenue was unchanged from the previous quarter, and cost of revenue also remained stable, but gross profit declined, resulting in a lower gross margin. Compared to the same quarter one year earlier, revenue and gross profit both increased, with gross profit rising at a faster pace, leading to an improved gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue was unchanged from the previous quarter, and cost of revenue also remained stable, but gross profit declined, resulting in a lower gross margin. Compared to the same quarter one year earlier, revenue and gross profit both increased, with gross profit rising at a faster pace, leading to an improved gross margin.
- The strongest observable margin driver is the sequential decline in gross profit relative to stable revenue, which caused the gross margin to contract.
- Compared to the preceding quarter, gross margin weakened as gross profit decreased while revenue held steady. Relative to the same quarter one year earlier, gross margin improved as both revenue and gross profit increased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.9%
Gross profit
$2.1B
Revenue
$5.7B
Cost of revenue
$3.6B
Quarter-over-quarter change
-0.7 pts
Year-over-year change
+0.6 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 | $5.4B | $2.0B | $3.5B | 36.3% |
| Mar 31, 2025 | $4.7B | $1.7B | $3.0B | 35.8% |
| Jun 30, 2025 | $5.7B | $2.2B | $3.6B | 37.6% |
| Sep 30, 2025 | $5.7B | $2.1B | $3.6B | 36.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-0.7 pts
Year-over-year change
Sep 30, 2024
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sequential decline in gross profit relative to stable revenue, which caused the gross margin to contract.
Compared to the preceding quarter, gross margin weakened as gross profit decreased while revenue held steady. Relative to the same quarter one year earlier, gross margin improved as both revenue and gross profit increased.
Monitor the trend in cost of revenue relative to revenue, as it directly influences gross margin movements.