ITNEUTRAL

IT Gross Margin Analysis

71.6%

Updated 1563h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying direct production costs, so at 71.6%, it retains $0.716 from every sales dollar.

Sector Performance

84th percentile

IT

71.6%

Sector Median

47.4%

Sector Avg

48.1%

Prior Period

64.6%(Apr 2026)

↑ Improving
📊

Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying direct production costs, so at 71.6%, it retains $0.716 from every sales dollar.

That figure sits well above the sector median of 46.4%, placing the company in the 86th percentile of peers, meaning only 14% of comparable firms have a higher margin. The trend is not measurable here: year-over-year change is N/A, quarter-over-quarter change is N/A, and no data exists for the last eight quarters; the only historical value provided is the current 71.6%. Because the level is high but the trend is unknown, the main risk is uncertainty about whether this margin is stable or deteriorating, while the opportunity is that the current margin already offers a strong cushion against cost increases. The combination of a very high margin with no trend data does not make the stock more attractive or more dangerous on its face, so it neither raises nor lowers conviction. This metric supports the overall NEUTRAL verdict, as a single high margin without movement cannot justify a bullish or bearish stance.

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.

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

47.4%

Sector Avg

48.1%

How IT's Gross Margin compares to sector peers.

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