GOOGLBULLISH

Gross Margin

62.4%

Higher than 67% of Communication Services sector peers

Updated 168h ago

Sector Performance

67th percentile

GOOGL

62.4%

Sector Median

54.0%

Sector Avg

57.8%

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Deep Analysis

Gross margin measures the percentage of revenue left after subtracting the direct costs of producing goods or services, so a 62.4% gross margin means Alphabet keeps $0.624 of every sales dollar before other expenses.

This sits above the Communication Services sector median of 54.0%, placing the company in the 67th percentile among peers — meaning it outperforms two-thirds of its sector. The year-over-year change is not available, but the quarter-over-quarter change is +4.3%, indicating an improvement in profitability over the most recent quarter. The combination of a gross margin well above the sector median and a recent upward trend signals a low near-term risk for investors, as the company is generating increasing profit from each sale. This metric directly supports the overall BULLISH verdict, since a high and improving gross margin suggests strong pricing power or cost control, both positive for future earnings.

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 62.4% compares to a Communication Services sector median of 54.0%, placing it in the 67th percentile.

Who are GOOGL's closest peers by Gross Margin?

The closest Communication Services peers by Gross Margin include: TWTR (54.0%), T (55.7%), NFLX (51.9%), SNAP (56.5%), DASH (50.6%).

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.