GILDNEUTRAL

Gross Margin

79.2%

Updated 272h ago

Sector Performance

93th percentile

GILD

79.2%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

A company's gross margin is the percentage of revenue it keeps after paying for the direct costs of making its products; GILD's current gross margin of 79.2% means it retains nearly 79 cents for every dollar of sales.

That is well above the sector median of 43.9%, placing GILD in the 93rd percentile among its peers. The year-over-year change is not available, but the quarter-over-quarter change is +7100.0% — a drastic jump from the prior quarter's 1.1%, likely reflecting a one-time cost reversal or inventory adjustment rather than a steady trend. Because the available historical data shows only two points (79.2% and 1.1%) and no multi-quarter trend direction, the combination of a very high current level with extreme volatility suggests caution: the margin may not be sustainable. The strong current margin is a positive factor, but the lack of a consistent trend and the uncertain baseline introduce risk. This mixed picture supports the overall NEUTRAL verdict, as the high margin alone does not outweigh the volatility and incomplete data.

Frequently Asked Questions

What does the Gross Margin tell investors about GILD?

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 GILD'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.