BABANEUTRAL

BABA Gross Margin Analysis

34.5%

Higher than 51% of Consumer Cyclical sector peers

Updated 299h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying the direct costs of producing its goods or services, so 34.5% means BABA retains $0.345 from each dollar of sales before other expenses.

Sector Performance

51th percentile

BABA

34.5%

Sector Median

34.2%

Sector Avg

26.4%

Prior Period

33.4%(May 2026)

↑ Improving

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Deep Analysis

This sits just above the sector median of 34.2%, placing BABA at the 51st percentile among Consumer Cyclical peers, essentially in line with the typical company. The trend is not available: the year-over-year change and quarter-over-quarter change are both N/A, and the only historical value provided is the current 34.5%, leaving no direction to assess. Because the level is nearly identical to the sector median and there is no trend data, the metric offers no clear sign of improving or deteriorating profitability, reducing both upside and downside risk on this dimension. The absence of a trend means the risk is neutral — no momentum to chase and no erosion to fear from this margin alone. This metric neither boosts nor undermines the overall NEUTRAL verdict on BABA, as it confirms an average competitive position without any directional signal.

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 34.2%, placing it in the 51th percentile.

Who are BABA's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: AEO (33.9%), URBN (36.6%), CHWY (30.1%), GME (40.7%), RH (41.4%).

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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.