Vertiv Holdings Co stock research
FY2025 Q4
Vertiv Holdings (VRT) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit both increased compared to the immediately preceding quarter and the same quarter one year earlier, while cost of revenue also rose over both periods. Gross margin improved sequentially and relative to the prior-year quarter, indicating that gross profit grew at a faster rate than cost of revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and gross profit both increased compared to the immediately preceding quarter and the same quarter one year earlier, while cost of revenue also rose over both periods. Gross margin improved sequentially and relative to the prior-year quarter, indicating that gross profit grew at a faster rate than cost of revenue.
- The strongest observable margin driver is the gross profit growth rate outpacing the cost of revenue growth rate, which led to a higher gross margin in all comparisons.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.9%
Gross profit
$1.1B
Revenue
$2.9B
Cost of revenue
$1.8B
Quarter-over-quarter change
+1.2 pts
Year-over-year change
+1.9 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 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% |
| Dec 31, 2025 | $2.9B | $1.1B | $1.8B | 38.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+1.2 pts
Year-over-year change
Dec 31, 2024
+1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the gross profit growth rate outpacing the cost of revenue growth rate, which led to a higher gross margin in all comparisons.
Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.
Monitor whether the growth rate of cost of revenue continues to be lower than that of gross profit, as this relationship directly supports gross margin stability or improvement.