GOOGL Gross Margin Analysis
Higher than 80% of Communication Services sector peers
Updated 154h ago·SEC filings & market data
Key Takeaway
Gross margin is the percentage of revenue left after covering direct costs of producing Alphabet's services, and at 61.6% it means Alphabet keeps $0.616 per dollar of revenue before other expenses.
Sector Performance
80th percentileGOOGL
61.6%
Sector Median
53.0%
Sector Avg
53.0%
Prior Period
62.4%(Jul 2026)
Deep Analysis
Gross margin is the percentage of revenue left after covering direct costs of producing Alphabet's services, and at 61.6% it means Alphabet keeps $0.616 per dollar of revenue before other expenses.
Among Communication Services peers, this is above the sector median of 57.8%, placing Alphabet at the 57th percentile. The year-over-year change is not available, but the quarter-over-quarter change is -1.3%, and the trend direction for the last 8 quarters is also not available. The current level is comfortably above the peer midpoint, yet the recent quarterly contraction suggests some margin pressure. This combination of above-median profitability with a near-term decline points to a moderate risk rather than a clear upside opportunity. Overall, the metric supports the NEUTRAL verdict because the high margin is offset by the negative quarterly movement.
Frequently Asked Questions
What does the Gross Margin tell investors about GOOGL?
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 GOOGL's Gross Margin compare to its sector?
GOOGL's Gross Margin of 61.6% compares to a Communication Services sector median of 53.0%, placing it in the 80th percentile.
Who are GOOGL's closest peers by Gross Margin?
The closest Communication Services peers by Gross Margin include: TWTR (54.0%), NFLX (51.9%), BIDU (38.9%), VOD (30.5%), META (81.4%).
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
53.0%
Sector Avg
53.0%
How GOOGL's Gross Margin compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.