JNJ Gross Margin Analysis

JNJ's gross margin of 68.2% means that for every dollar of revenue, the company keeps roughly 68.2 cents after covering the direct costs of producing its products, leaving 31.8 cents for other expenses and profit.

This level exactly matches the sector median of 68.2%, but JNJ sits at the 0th percentile among healthcare peers, meaning its gross margin is the lowest in the peer group. The year-over-year change is not available, while the quarter-over-quarter change shows a +2.9% improvement. Although the trend direction over eight quarters is not available, the two most recent values (68.2% then 66.3%) indicate a recent recovery. The combination of a gross margin that is at the sector median but at the bottom of peers, paired with a small quarterly uptick, suggests limited competitive pricing power but a modest short-term improvement. This metric does not strongly contradict the overall CAUTIOUS verdict, as the low percentile rank reinforces caution despite the recent uptick.

Frequently Asked Questions