HPQNEUTRAL

HPQ Gross Margin Analysis

20.9%

Updated 29h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue left after subtracting the direct costs of producing goods, and HPQ's current 20.9% means it keeps about 20.9 cents of every sales dollar before other expenses.

Sector Performance

14th percentile

HPQ

20.9%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

19.6%(Apr 2026)

↑ Improving

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Deep Analysis

This sits well below the sector median of 44.9%, placing HPQ in the 14th percentile among peers, so the company trails most of its sector on profitability per sale. The year-over-year change is not available, the quarter-over-quarter change is not available, and the trend direction over the last 8 quarters is N/A, leaving no historical pattern to assess. The combination of a low margin and absent trend data creates risk because investors cannot confirm whether margin pressure is easing or worsening, though it also leaves room for improvement from a low starting point. This low level contradicts a neutral verdict on its own, but without trend information, it neither supports nor overturns the overall NEUTRAL rating.

Frequently Asked Questions

What does the Gross Margin tell investors about HPQ?

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 HPQ's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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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.