ACNNEUTRAL

Gross Margin

30.3%

Higher than 5% of Technology sector peers

Updated 1926h ago

Sector Performance

5th percentile

ACN

30.3%

Sector Median

65.2%

Sector Avg

60.4%

📊

Deep Analysis

Accenture’s gross margin of 30.3% is the percentage of revenue left after subtracting the direct costs of delivering its services, such as employee salaries and subcontractor expenses.

This figure sits well below the technology sector median of 65.9%, placing Accenture at the 0th percentile among peers—meaning virtually all competitors report a higher gross margin. The metric has been perfectly stable over the last eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. A stable margin at such a low level relative to the sector suggests that Accenture’s business model—which relies heavily on labor—inherently produces lower gross profitability than software or product-based tech companies. For investors, this combination of a low level and no growth signals limited margin expansion risk but also no opportunity for improvement from this line item. This flat, below-average metric does not contradict the overall NEUTRAL verdict, as it reinforces the absence of either a clear positive catalyst or a deteriorating condition in profitability.

Frequently Asked Questions

What does the Gross Margin tell investors about ACN?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does ACN's Gross Margin compare to its sector?

ACN's Gross Margin of 30.3% compares to a Technology sector median of 65.2%, placing it in the 5th percentile.

Who are ACN's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: ONTO (50.1%), SHOP (48.8%), UBER (45.0%), LSPD (44.4%), GRAB (43.4%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.