Vertiv Holdings Co stock research
FY2025 Q3
Vertiv Holdings (VRT) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose as well. Gross margin improved from the prior quarter but was slightly lower than the same quarter a year ago.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose as well. Gross margin improved from the prior quarter but was slightly lower than the same quarter a year ago.
- The gross margin improvement from the prior quarter was driven by a larger increase in gross profit relative to the increase in revenue, with cost of revenue growing at a slower pace. Compared to the same quarter last year, the slight decline in gross margin reflects a proportionally larger increase in cost of revenue relative to revenue.
- Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, but gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.8%
Gross profit
$1.0B
Revenue
$2.7B
Cost of revenue
$1.7B
Quarter-over-quarter change
+3.8 pts
Year-over-year change
+1.3 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 |
|---|---|---|---|---|
| Dec 31, 2024 | $2.3B | $870.2M | $1.5B | 37.1% |
| Mar 31, 2025 | $2.0B | $686.5M | $1.3B | 33.7% |
| Jun 30, 2025 | $2.6B | $896.6M | $1.7B | 34.0% |
| Sep 30, 2025 | $2.7B | $1.0B | $1.7B | 37.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+3.8 pts
Year-over-year change
Sep 30, 2024
+1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement from the prior quarter was driven by a larger increase in gross profit relative to the increase in revenue, with cost of revenue growing at a slower pace. Compared to the same quarter last year, the slight decline in gross margin reflects a proportionally larger increase in cost of revenue relative to revenue.
Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, but gross margin was slightly lower.
Monitor the trend in cost of revenue relative to revenue, as its growth rate influenced the gross margin comparison with the prior year.