BIDUCAUTIOUS

BIDU Gross Margin Analysis

38.9%

Higher than 20% of Communication Services sector peers

Updated 396h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company retains after paying the direct costs of producing its goods or services; BIDU’s current 38.9% means that for every dollar of sales, about 39 cents remains to cover other expenses and profit.

Sector Performance

20th percentile

BIDU

38.9%

Sector Median

53.0%

Sector Avg

58.3%

Prior Period

44.2%(May 2026)

↓ Declining

📊

Deep Analysis

This sits well below the Communication Services sector median of 54.0%, placing the company at the 19th percentile among its peers. The year-over-year change is not available, but the quarter-over-quarter decline of 12.0% shows a sharp contraction from the prior quarter’s 44.2%. A low margin combined with a steep recent drop signals elevated near-term risk, as the company is losing pricing power or facing higher input costs relative to competitors. This deterioration directly contradicts any bullish expectations and reinforces the overall CAUTIOUS verdict on the stock.

Frequently Asked Questions

What does the Gross Margin tell investors about BIDU?

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 BIDU's Gross Margin compare to its sector?

BIDU's Gross Margin of 38.9% compares to a Communication Services sector median of 53.0%, placing it in the 20th percentile.

Who are BIDU's closest peers by Gross Margin?

The closest Communication Services peers by Gross Margin include: TWTR (54.0%), NFLX (51.9%), DASH (50.6%), SNAP (56.5%), TWLO (48.6%).

📚

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.