FANGNEUTRAL

FANG Gross Margin Analysis

46.4%

Updated 297h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after paying direct production costs, and FANG’s current 46.4% means that for every dollar of sales, about 46.4 cents remain before other expenses.

Sector Performance

49th percentile

FANG

46.4%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

37.9%(Aug 2026)

↑ Improving

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Deep Analysis

Gross margin is the share of revenue left after paying direct production costs, and FANG’s current 46.4% means that for every dollar of sales, about 46.4 cents remain before other expenses.

That figure sits exactly at the sector median of 46.4%, and FANG ranks at the 49th percentile among peers, meaning it is essentially in the middle of the pack. The year-over-year change is not available, so the only trend signal is the quarter-over-quarter increase of +22.4%, which moved the margin up from 37.9% in the prior quarter. Because the level is average but the latest quarter shows a sharp improvement, the risk is balanced: there is no evidence of a sustained trend, yet the recent jump could signal better cost control or pricing power. This combination supports the overall NEUTRAL verdict, as the current margin matches peers while the single-quarter gain offers a reason to watch, but not to change a stance. The metric neither strengthens nor weakens the case for a positive or negative view, aligning with the neutral assessment.

Frequently Asked Questions

What does the Gross Margin tell investors about FANG?

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 FANG'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.