ANSSCAUTIOUS

Gross Margin

85.6%

Higher than 91% of Technology sector peers

Updated 1928h ago

Sector Performance

91th percentile

ANSS

85.6%

Sector Median

65.2%

Sector Avg

60.4%

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Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying for the direct costs of producing its software and services; ANSYS’s 85.6% means it retains over 85 cents of every dollar earned.

That figure is well above the sector median of 65.9%, placing ANSYS in the 83rd percentile among technology peers. The metric has been completely stable over the trailing eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. A high and stable gross margin suggests ANSYS has durable pricing power and low variable costs, which reduces earnings risk but also implies limited recent improvement. This combination of an already elevated level with no upward trend points to low short-term opportunity for margin-driven gains, aligning with the cautious view on the stock. Therefore, the gross margin metric supports the overall CAUTIOUS verdict by confirming a strong but mature profit structure that lacks catalysts for further expansion.

Frequently Asked Questions

What does the Gross Margin tell investors about ANSS?

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 ANSS's Gross Margin compare to its sector?

ANSS's Gross Margin of 85.6% compares to a Technology sector median of 65.2%, placing it in the 91th percentile.

Who are ANSS's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: ORCL (65.2%), MDB (72.2%), SAP (73.0%), LIF (77.3%), OKTA (77.8%).

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.