GOOG Gross Margin Analysis
Higher than 0% of COMMUNICATION SERVICES sector peers
Updated 681h ago·SEC filings & market data
Key Takeaway
GOOG’s gross margin of 61.6% means that after paying the direct costs of generating its revenue—like data center expenses and content acquisition—the company keeps $0.616 of every sales dollar as gross profit.
Sector Performance
0th percentileGOOG
61.6%
Sector Median
61.6%
Sector Avg
61.6%
Prior Period
62.4%(Jul 2026)
Deep Analysis
GOOG’s gross margin of 61.6% means that after paying the direct costs of generating its revenue—like data center expenses and content acquisition—the company keeps $0.616 of every sales dollar as gross profit.
This sits exactly at the sector median of 61.6% for Communication Services, placing GOOG at the 0th percentile among peers, meaning every comparable company in the sector has an equal or higher gross margin. The trend data is limited: year-over-year change is N/A, while quarter-over-quarter gross margin fell 1.3 percentage points from 62.4% to 61.6%. The combination of a sector-average level with a recent quarter-over-quarter decline points to moderate risk, as GOOG lacks a margin edge over peers and is currently losing some pricing power or cost efficiency. This metric neither supports nor contradicts the overall BULLISH verdict directly—it shows a neutral-to-slightly-negative fundamental position, so the bullish case must rely on other factors like revenue growth or valuation.
Frequently Asked Questions
What does the Gross Margin tell investors about GOOG?
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.
How does GOOG's Gross Margin compare to its sector?
GOOG's Gross Margin of 61.6% compares to a COMMUNICATION SERVICES sector median of 61.6%, placing it in the 0th percentile.
Learn More About Gross Margin
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.
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61.6%
Sector Median
61.6%
Sector Avg
61.6%
How GOOG's Gross Margin compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.