ITNEUTRAL

IT Gross Margin Analysis

71.6%

Updated 60h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company retains after covering the direct costs of producing its goods or services — a 71.6% gross margin means that for every dollar of sales, roughly 71.6 cents remain to cover operating expenses and profit.

Sector Performance

87th percentile

IT

71.6%

Sector Median

44.6%

Sector Avg

45.5%

Prior Period

64.6%(Apr 2026)

↑ Improving
📊

Deep Analysis

Gross margin measures the percentage of revenue a company retains after covering the direct costs of producing its goods or services — a 71.6% gross margin means that for every dollar of sales, roughly 71.6 cents remain to cover operating expenses and profit.

This value places the company far above its sector median of 44.6%, ranking in the 87th percentile among peers, indicating it operates with a much higher cost advantage or pricing power than the typical competitor. No historical trend is available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and only one data point (71.6%) has been reported, so there is no basis to judge whether this margin is improving, stable, or deteriorating. The combination of a very high current margin with no trend data limits insight — the level alone suggests a competitive edge, but without any movement to assess, it is unclear whether this advantage is sustainable or temporary. This metric supports the NEUTRAL overall verdict because a strong gross margin is a positive signal, but the lack of trend data and the neutral rating imply that other factors — such as revenue growth, expenses, or valuation — prevent a more bullish conclusion.

Frequently Asked Questions

What does the Gross Margin tell investors about IT?

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 IT'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%).

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.

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IT

71.6%

Sector Median

44.6%

Sector Avg

45.5%

How IT's Gross Margin compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.