DOWNEUTRAL

DOW Gross Margin Analysis

17.9%

Updated 57h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after paying direct production costs, so DOW’s 17.9% means about 17.9 cents of every sales dollar remain to cover other expenses.

Sector Performance

9th percentile

DOW

17.9%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

6.5%(Jul 2026)

↑ Improving

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Deep Analysis

Gross margin is the share of revenue left after paying direct production costs, so DOW’s 17.9% means about 17.9 cents of every sales dollar remain to cover other expenses.

That is well below its sector peers, where the median is 46.4%, placing DOW in the 10th percentile. The year-over-year change is not available, but the quarter-over-quarter change is +175.4%, moving from 6.5% in the prior quarter to the current 17.9%. The low absolute level leaves little room for error, while the sharp upward turn suggests recent cost or pricing improvements may be taking hold. With a level far under the sector median but a strong positive trajectory, the risk is balanced between ongoing margin weakness and potential recovery. This supports the overall NEUTRAL verdict, since the weak level and improving trend offset each other.

Frequently Asked Questions

What does the Gross Margin tell investors about DOW?

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 DOW'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.