CTSHNEUTRAL

CTSH Gross Margin Analysis

32.8%

Updated 921h 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; CTSH’s current gross margin of 32.8% means it retains about 32.8 cents of every dollar of revenue after those production costs.

Sector Performance

25th percentile

CTSH

32.8%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

29.6%(May 2026)

↑ Improving

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Deep Analysis

This is below the sector median of 44.6%, placing CTSH in the 28th percentile among its sector peers, indicating lower profitability from its core operations than most competitors. No year-over-year or quarter-over-quarter change data is available, and the trend over the last eight quarters is also listed as N/A, so no directional movement can be assessed. The combination of a below-median gross margin with no trend data suggests a potential risk of weaker pricing power or higher input costs, but without a historical pattern, the risk is not confirmed. This metric supports the overall NEUTRAL verdict, as the below-median level warrants caution while the absence of a deteriorating trend avoids a bearish signal.

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: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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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.