GWRENEUTRAL

GWRE Gross Margin Analysis

63.5%

Updated 372h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying for the direct costs of producing its goods or services—63.5% means GWRE retains nearly two-thirds of each dollar as profit before other expenses.

Sector Performance

78th percentile

GWRE

63.5%

Sector Median

44.6%

Sector Avg

45.5%

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Deep Analysis

That figure is well above the sector median of 44.7%, placing GWRE in the 79th percentile among its peers, indicating it operates with better cost efficiency than most comparable companies. The year-over-year and quarter-over-quarter changes are both N/A, so there is no data to assess whether this margin is improving, declining, or stable. A high margin combined with an unavailable trend creates a mixed picture: the current level lowers near-term risk from cost pressure, but the lack of historical direction makes it difficult to gauge sustainability. This metric supports the overall NEUTRAL verdict—the strong margin is a clear positive, but without trend visibility, it cannot justify a bullish or bearish rating by itself.

Frequently Asked Questions

What does the Gross Margin tell investors about GWRE?

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 GWRE's closest peers by Gross Margin?

The closest peers by Gross Margin include: MSCI (82.7%), SYF (82.7%), EA (82.8%), THC (83.4%), INTU (83.9%).

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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.