FFIVNEUTRAL

Gross Margin

81.4%

Updated 126h ago

Sector Performance

94th percentile

FFIV

81.4%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying for the direct costs of producing its goods or services; at 81.4%, FFIV retains over 81 cents of every dollar of sales.

This far exceeds the sector median of 44.2% and places the company in the 95th percentile among its peers, indicating a major competitive advantage in pricing power or cost structure. The year-over-year change is not available, but the quarter-over-quarter decline of 1.7% (from 82.8% to 81.4%) shows a small recent contraction in profitability. The combination of an extremely high margin level with a slight downward trend suggests that while the business remains highly profitable, the minor erosion warrants monitoring for any sustained pressure on pricing or input costs. This metric alone does not contradict the overall NEUTRAL verdict, as the strong margin is already priced into expectations, and the modest QoQ decline may temper upside conviction.

Frequently Asked Questions

What does the Gross Margin tell investors about FFIV?

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 FFIV's closest peers by Gross Margin?

The closest peers by Gross Margin include: EXPD (14.0%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

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.