HPENEUTRAL

Gross Margin

36.5%

Updated 248h ago

Sector Performance

34th percentile

HPE

36.5%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin represents the percentage of revenue a company keeps after paying for the direct costs of producing its products or services; at 36.5%, HPE retains about 36.5 cents of every dollar of sales.

This figure sits well below the sector median of 44.4%, placing HPE in the 34th percentile among its industry peers, meaning nearly two-thirds of competitors have higher gross margins. The year-over-year change is not available for comparison, but the quarter-over-quarter change shows a +1.7% improvement, from 35.9% to 36.5%. While the current margin level signals below-average profitability relative to peers, the recent upward tick suggests a modest near-term positive shift in cost or pricing dynamics. This combination — a low level paired with a single-quarter rise — implies both the risk of persistent competitive disadvantage and a potential opportunity if the improvement continues. The overall NEUTRAL verdict is supported by this metric: the margin is not strong enough to upgrade the stock, but the recent improvement prevents a downgrade based solely on this data.

Frequently Asked Questions

What does the Gross Margin tell investors about HPE?

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 HPE's closest peers by Gross Margin?

The closest peers by Gross Margin include: WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

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.