EOGNEUTRAL

EOG Gross Margin Analysis

71.7%

Updated 393h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after covering direct production costs, so EOG's 71.7% means it keeps about $0.72 of every sales dollar before other expenses.

Sector Performance

84th percentile

EOG

71.7%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

65.8%(Jul 2026)

↑ Improving

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Deep Analysis

Gross margin is the share of revenue left after covering direct production costs, so EOG's 71.7% means it keeps about $0.72 of every sales dollar before other expenses.

That level exceeds the sector median of 46.4% and places EOG in the 86th percentile among peers. The 8-quarter trend direction is not available, and the year-over-year change is N/A, but the quarter-over-quarter change is +9.0% (from 65.8% to 71.7%). The combination of a high margin and recent quarterly improvement lowers the risk of cost pressure squeezing profits, though it also suggests the company may have limited room to raise margins much further. This margin data points to a competitive cost position, but it does not signal a major upside or downside catalyst by itself. Overall, the metric supports the NEUTRAL verdict, since a strong gross margin is consistent with stability rather than a clear reason to be bullish or bearish.

Frequently Asked Questions

What does the Gross Margin tell investors about EOG?

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 EOG'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.