JNJCAUTIOUS

Gross Margin

66.3%

Updated 32h ago

Sector Performance

82th percentile

JNJ

66.3%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying for the cost of goods sold, so JNJ’s 66.3% means it retains over two-thirds of each sales dollar as gross profit.

That level sits well above the sector median of 44.7%, placing JNJ in the 82nd percentile among its peers. Trend data is not available — the year-over-year and quarter-over-quarter changes are both listed as N/A, and only a single historical value of 66.3% is provided, so no directional pattern can be assessed. A gross margin that is both high relative to the sector and lacks any trend history introduces uncertainty; the elevated level could indicate pricing power or cost advantages, but without knowing whether it is improving or eroding, the risk is that the current advantage may not persist. This metric neither supports nor contradicts the overall CAUTIOUS verdict on its own, because a strong margin level is typically favorable, yet the absence of trend data prevents confirmation of stability.

Frequently Asked Questions

What does the Gross Margin tell investors about JNJ?

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 JNJ's closest peers by Gross Margin?

The closest peers by Gross Margin include: WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

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.