APACAUTIOUS

APA Gross Margin Analysis

96.8%

Higher than 92% of Energy sector peers

Updated 2813h ago·SEC filings & market data

Key Takeaway

The gross margin measures the percentage of revenue left after deducting the direct costs of producing goods or services; APA’s current 96.8% means it retains nearly all revenue after those costs.

Sector Performance

92th percentile

APA

96.8%

Sector Median

47.1%

Sector Avg

56.6%

Prior Period

39.2%(Apr 2026)

↑ Improving

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Deep Analysis

The gross margin measures the percentage of revenue left after deducting the direct costs of producing goods or services; APA’s current 96.8% means it retains nearly all revenue after those costs.

This figure vastly exceeds the energy sector median of 22.8% and places APA in the 100th percentile among peers. While the trend direction over the last eight quarters is labeled increasing, the year-over-year and quarter-over-quarter changes are both exactly +0.0%, and the last four quarters have been flat at 96.8% after a jump from 39.2% four quarters earlier. The combination of an extreme margin level with no recent movement suggests the company may have achieved a structural advantage or benefited from a one-time accounting shift, but the plateau offers little growth catalyst. This metric supports the overall CAUTIOUS verdict: the margin is so far above sector norms and has stopped rising that its sustainability is uncertain, reinforcing a cautious view rather than a bullish one.

Frequently Asked Questions

What does the Gross Margin tell investors about APA?

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 APA's Gross Margin compare to its sector?

APA's Gross Margin of 96.8% compares to a Energy sector median of 47.1%, placing it in the 92th percentile.

Who are APA's closest peers by Gross Margin?

The closest Energy peers by Gross Margin include: MTDR (47.1%), SU (48.8%), NOVA (44.3%), AR (39.8%), PXD (34.2%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

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.