GDNEUTRAL

GD Gross Margin Analysis

15.5%

Updated 297h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after direct production costs, so 15.5% means GD keeps $0.155 of each sales dollar before other expenses.

Sector Performance

6th percentile

15.5%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

15.9%(Jul 2026)

↓ Declining

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Deep Analysis

Gross margin is the share of revenue left after direct production costs, so 15.5% means GD keeps $0.155 of each sales dollar before other expenses.

That is far below the sector median of 46.4%, placing GD in the 7th percentile among peers. The trend is limited: the 8-quarter trend is N/A, the year-over-year change is N/A, and the most recent quarter fell 2.5% from 15.9% to 15.5%. A low margin combined with a recent decline signals compressed pricing power or higher input costs, which raises downside risk if the drop continues. For a neutral-rated stock, this metric points to weaker profitability than the sector, but the N/A longer-term trend

Frequently Asked Questions

What does the Gross Margin tell investors about GD?

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 GD'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.