HDCAUTIOUS

HD Gross Margin Analysis

33.0%

Updated 60h ago·SEC filings & market data

Key Takeaway

Gross Margin measures the percentage of revenue a company keeps after paying the direct costs of producing its goods — a 33.0% margin means HD retains $0.33 of every sales dollar.

Sector Performance

28th percentile

33.0%

Sector Median

44.6%

Sector Avg

45.5%

Prior Period

32.6%(Apr 2026)

↑ Improving

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Deep Analysis

Gross Margin measures the percentage of revenue a company keeps after paying the direct costs of producing its goods — a 33.0% margin means HD retains $0.33 of every sales dollar.

This 33.0% sits well below the sector median of 44.6%, placing HD in the 28th percentile among its peers, meaning 72% of competitors achieve higher gross margins. No year-over-year or quarter-over-quarter changes are available, and no historical trend data exists for the last eight quarters, so there is no demonstrated direction to evaluate. The combination of a below-median margin level and a complete lack of trend information increases uncertainty — without recent improvement or deterioration data, investors cannot assess whether the gap with peers is stable or worsening. This metric supports the overall CAUTIOUS verdict: a gross margin far below the sector median, with no observable momentum to narrow the gap, reinforces caution about HD’s pricing power and cost structure relative to its industry.

Frequently Asked Questions

What does the Gross Margin tell investors about HD?

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 HD'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.