ITWCAUTIOUS

ITW Gross Margin Analysis

43.8%

Updated 12h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company retains after paying the direct costs of producing its goods — at 43.8%, ITW keeps $0.438 of every dollar of sales before other expenses.

Sector Performance

49th percentile

ITW

43.8%

Sector Median

44.6%

Sector Avg

45.5%

Prior Period

44.2%(Apr 2026)

→ Stable

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Deep Analysis

Gross margin measures the percentage of revenue a company retains after paying the direct costs of producing its goods — at 43.8%, ITW keeps $0.438 of every dollar of sales before other expenses.

This sits just below the sector median of 44.7%, placing ITW at the 49th percentile among peers, meaning it is roughly in the middle of the pack for cost efficiency. The trend data is not available: the year-over-year change is marked N/A, the quarter-over-quarter change is marked N/A, and only a single historical value of 43.8% is provided, so no trajectory can be assessed. Because the metric shows only a static level slightly below the sector median, there is no clear evidence of improving or deteriorating profitability, which introduces uncertainty rather than a clear risk or opportunity. This neutral positioning does not strongly support or contradict the overall CAUTIOUS verdict — the lack of trend information reinforces the caution, as it prevents a confident assessment of margin stability.

Frequently Asked Questions

What does the Gross Margin tell investors about ITW?

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 ITW'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%).

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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.