CTSHNEUTRAL

Gross Margin

32.8%

Updated 32h ago

Sector Performance

28th percentile

CTSH

32.8%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

CTSH’s gross margin of 32.8% means that for every dollar of revenue, the company keeps $0.328 after covering the direct costs of delivering its services and products.

This places it well below the sector median of 44.7%, ranking in the 28th percentile among its peers—indicating that most competitors operate with higher efficiency or pricing power. The metric lacks a year-over-year and quarter-over-quarter change, both reported as N/A, and no trend direction is available, leaving no basis to assess recent momentum. Because the margin is already low relative to the sector and there is no trend data, the investment risk is elevated: a low level with no visible improvement suggests the company may face structural cost pressures. This metric does not contradict the NEUTRAL verdict, as the low margin is a concern, but without trend information the full picture remains unclear, supporting a balanced view rather than a bullish or bearish stance.

Frequently Asked Questions

What does the Gross Margin tell investors about CTSH?

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.

Who are CTSH's closest peers by Gross Margin?

The closest peers by Gross Margin include: WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

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.