INFYNEUTRAL

INFY Gross Margin Analysis

31.5%

Updated 419h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company keeps after paying direct production costs, so at 31.5%, INFY retains $0.315 of every sales dollar before other expenses.

Sector Performance

24th percentile

INFY

31.5%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

30.9%(Jul 2026)

↑ Improving

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying direct production costs, so at 31.5%, INFY retains $0.315 of every sales dollar before other expenses.

That level sits below the sector median of 45.1%, placing INFY in the 26th percentile of peers — meaning three-quarters of comparable companies show higher gross margins. The trend data is not available: year-over-year change is N/A, quarter-over-quarter change is N/A, and the last 8 quarters show no direction. With a low margin relative to peers and no observable trajectory, investors face heightened uncertainty about whether cost pressures or pricing moves will resolve favorably. The absence of a trend means the current level cannot be assessed as improving or deteriorating, leaving risk concentrated in the margin gap itself. This metric supports the overall NEUTRAL verdict because the sub-median margin is a concern, but without trend information it does not justify a more bearish or bullish stance.

Frequently Asked Questions

What does the Gross Margin tell investors about INFY?

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 INFY's closest peers by Gross Margin?

The closest peers by Gross Margin include: HII (12.6%), VLO (12.3%), EXPD (12.3%), LMT (12.2%), EPD (12.1%).

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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.