FICONEUTRAL

Gross Margin

86.8%

Updated 32h ago

Sector Performance

97th percentile

FICO

86.8%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin, the percentage of revenue left after subtracting the cost of goods sold, is 86.8% for FICO.

This means the company keeps $0.868 of every dollar of revenue before other expenses, indicating high pricing power or low production costs. Compared to sector peers, where the median gross margin is 44.7%, FICO's margin places it at the 97th percentile — far above the typical company in its industry. The year-over-year change and quarter-over-quarter change are both listed as N/A, so no trend data is available for the last eight quarters. Without a directional trend, the combination of an extremely high level relative to peers suggests a competitive advantage that may reduce downside risk, but the lack of movement offers no clear signal for acceleration or erosion. This metric supports the overall NEUTRAL verdict: the strong margin is a positive attribute, but the absence of trend information and the stock’s neutral rating imply that other factors balance out the valuation or growth story.

Frequently Asked Questions

What does the Gross Margin tell investors about FICO?

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 FICO's closest peers by Gross Margin?

The closest peers by Gross Margin include: WHR (12.7%), 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.