BABANEUTRAL

Gross Margin

34.5%

Higher than 47% of Consumer Cyclical sector peers

Updated 49h ago

Sector Performance

47th percentile

BABA

34.5%

Sector Median

36.3%

Sector Avg

30.6%

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying for the cost of goods sold, so BABA’s 34.5% means it retains $0.345 of every dollar in revenue after covering direct production costs.

This sits below the sector median of 36.3%, placing BABA in the 47th percentile among Consumer Cyclical peers—slightly weaker than the midpoint. The trend over the last eight quarters is described as stable, with no year-over-year change reported, but a clear quarter-over-quarter improvement of +3.3% (from 33.4% to 34.5%). The combination of a below-median level with a stable-to-improving trend suggests limited immediate risk but also no clear competitive advantage; further gains would be needed to narrow the gap with peers. This metric neither supports nor contradicts the overall NEUTRAL verdict, because the gross margin is essentially average for the sector and moving in a neutral direction.

Frequently Asked Questions

What does the Gross Margin tell investors about BABA?

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 BABA's Gross Margin compare to its sector?

BABA's Gross Margin of 34.5% compares to a Consumer Cyclical sector median of 36.3%, placing it in the 47th percentile.

Who are BABA's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: ROST (29.6%), BBY (23.5%), BROS (23.1%), XPEV (20.6%), BWA (19.2%).

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.