CVSCAUTIOUS

CVS Gross Margin Analysis

15.6%

Updated 492h ago·SEC filings & market data

Key Takeaway

CVS's gross margin of 15.6% means the company keeps roughly 15.6 cents of every dollar of revenue after covering the direct costs of producing its goods and services.

Sector Performance

7th percentile

CVS

15.6%

Sector Median

44.6%

Sector Avg

45.5%

Prior Period

12.8%(Apr 2026)

↑ Improving

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Deep Analysis

CVS's gross margin of 15.6% means the company keeps roughly 15.6 cents of every dollar of revenue after covering the direct costs of producing its goods and services.

That figure sits far below the sector’s median of 44.4%, placing CVS in the 8th percentile among its peers — a low ranking that signals much thinner pricing power or higher input costs relative to competitors. Because the year-over-year and quarter-over-quarter changes are both listed as N/A, and no prior eight-quarter trend is available, there is no data to judge whether the margin is improving or deteriorating. The combination of a very low margin level with no trend information leaves the investment risk elevated: CVS already operates at a structural disadvantage in its industry, and the absence of a direction means investors cannot confirm any recovery. This metric directly supports the overall CAUTIOUS verdict, as the weak margin alone suggests limited profitability cushion and higher vulnerability to cost increases or revenue pressure.

Frequently Asked Questions

What does the Gross Margin tell investors about CVS?

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 CVS's closest peers by Gross Margin?

The closest peers by Gross Margin include: MSCI (82.7%), SYF (82.7%), EA (82.8%), THC (83.4%), INTU (83.9%).

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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.