HONCAUTIOUS

HON Gross Margin Analysis

37.6%

Updated 12h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue left after paying direct production costs, so a 37.6% figure means HON keeps $0.376 of every sales dollar before other expenses.

Sector Performance

38th percentile

HON

37.6%

Sector Median

44.6%

Sector Avg

45.5%

Prior Period

38.7%(Jul 2026)

↓ Declining

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Deep Analysis

Gross margin is the percentage of revenue left after paying direct production costs, so a 37.6% figure means HON keeps $0.376 of every sales dollar before other expenses.

That level sits below the sector median of 44.6%, placing HON at the 38th percentile among peers—meaning roughly 62% of comparable companies achieve a higher gross margin. The trend data is incomplete: year-over-year change is N/A, but the quarter-over-quarter change of -2.8% shows a clear sequential decline from 38.7% to 37.6%. A margin that is both below the sector norm and falling quarter over quarter points to rising input costs, weaker pricing power, or a less favorable product mix—all of which increase earnings pressure. For an investor, this combination implies higher downside risk relative to sector peers, since HON has less buffer to absorb operating expenses or demand shocks. This metric directly supports the overall CAUTIOUS verdict, as the declining and below-median gross margin reinforces concerns about profitability stability.

Frequently Asked Questions

What does the Gross Margin tell investors about HON?

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 HON'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.