ESTCNEUTRAL

ESTC Gross Margin Analysis

75.4%

Higher than 67% of Technology sector peers

Updated 177h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying direct costs to produce its software, with the rest covering operating expenses and profit.

Sector Performance

67th percentile

ESTC

75.4%

Sector Median

66.3%

Sector Avg

62.2%

Prior Period

76.3%(May 2026)

↓ Declining

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Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying direct costs to produce its software, with the rest covering operating expenses and profit.

At 75.4%, ESTC retains $0.754 of every revenue dollar, which is well above the sector median of 66.9% and places it in the 67th percentile among technology peers. The trend for this metric is N/A, as both year-over-year change and quarter-over-quarter change are reported as N/A, providing no directional signal from recent history. The high margin suggests a competitive cost structure, but the absence of trend data limits the ability to assess whether this advantage is expanding or eroding, creating uncertainty rather than a clear opportunity. This combination of a strong current level with no observable trajectory implies a neutral risk profile: the margin supports profitability today, yet offers no confirmation for forward-looking confidence. Therefore, this metric aligns with the overall NEUTRAL verdict, as it neither strengthens the case for bullishness nor raises a specific concern.

Frequently Asked Questions

What does the Gross Margin tell investors about ESTC?

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.

How does ESTC's Gross Margin compare to its sector?

ESTC's Gross Margin of 75.4% compares to a Technology sector median of 66.3%, placing it in the 67th percentile.

Who are ESTC's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: ADI (67.3%), MDB (72.2%), NVDA (74.9%), CRWD (75.3%), CRM (76.9%).

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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.