KONEUTRAL

KO Gross Margin Analysis

62.9%

Updated 6h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after covering the direct costs of producing beverages, and at 62.9% it means KO keeps roughly 63 cents of every sales dollar before other expenses.

Sector Performance

73th percentile

62.9%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

63.0%(Jul 2026)

→ Stable

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Deep Analysis

Gross margin is the share of revenue left after covering the direct costs of producing beverages, and at 62.9% it means KO keeps roughly 63 cents of every sales dollar before other expenses.

This sits well above the sector median of 46.4%, placing KO in the 74th percentile among peers, so the company is more profitable per dollar of sales than most. The trend data is limited: the year-over-year change and 8-quarter direction are N/A, while the quarter-over-quarter change is -0.2%. That slight dip from the prior value of 63.0% is minor and does not alter the picture of a high-margin business. The combination of a level far above the sector median and a negligible quarterly decline suggests steady profitability without immediate momentum for improvement or deterioration. This supports the overall NEUTRAL verdict, as the strong margin is a positive but the flat trend offers no clear catalyst for a more bullish or bearish stance.

Frequently Asked Questions

What does the Gross Margin tell investors about KO?

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 KO's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), WEC (43.1%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%).

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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.