AXPNEUTRAL

Gross Margin

84.6%

Higher than 73% of Financial Services sector peers

Updated 1928h ago

Sector Performance

73th percentile

AXP

84.6%

Sector Median

68.5%

Sector Avg

67.7%

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Deep Analysis

American Express’s gross margin of 84.6% means that for every dollar of revenue, the company keeps roughly 84.6 cents after covering the direct costs of providing its services—a measure of core profitability.

This figure sits above the Financial Services sector median of 76.6%, placing AXP in the 66th percentile among its peers, indicating above-average efficiency. However, no trend data is available: the year-over-year change, quarter-over-quarter change, and the direction over the last eight quarters are all listed as N/A, so there is no basis to assess recent momentum. The combination of a high absolute margin with no trend information suggests that while the current level supports a low risk of cost-structure weakness, the absence of historical movement makes it hard to gauge whether this advantage is stable or eroding. This metric supports the overall NEUTRAL verdict, as the strong margin relative to peers is a positive factor, but the lack of trend data prevents drawing a stronger bullish or bearish conclusion.

Frequently Asked Questions

What does the Gross Margin tell investors about AXP?

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 AXP's Gross Margin compare to its sector?

AXP's Gross Margin of 84.6% compares to a Financial Services sector median of 68.5%, placing it in the 73th percentile.

Who are AXP's closest peers by Gross Margin?

The closest Financial Services peers by Gross Margin include: SLM (68.5%), SPGI (70.4%), JPM (64.3%), HDB (58.4%), COF (57.8%).

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.