LHXNEUTRAL

LHX Gross Margin Analysis

24.4%

Updated 156h ago·SEC filings & market data

Key Takeaway

LHX's gross margin of 24.4% means that after subtracting the direct costs of producing its goods or services, the company keeps 24.4 cents of every dollar in revenue as gross profit.

Sector Performance

19th percentile

LHX

24.4%

Sector Median

44.6%

Sector Avg

45.5%

Prior Period

25.6%(Apr 2026)

↓ Declining

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Deep Analysis

LHX's gross margin of 24.4% means that after subtracting the direct costs of producing its goods or services, the company keeps 24.4 cents of every dollar in revenue as gross profit.

This is well below the sector median of 44.6%, placing LHX at the 19th percentile among its peers—meaning 81% of competitors have a higher gross margin. Trend data is unavailable, with both year-over-year and quarter-over-quarter changes marked as N/A, so no direction can be inferred from recent movement. In isolation, a low gross margin relative to the sector suggests weaker pricing power or higher production costs, and the absence of a trend leaves uncertainty about whether this is improving or worsening. This metric challenges the overall NEUTRAL verdict because a bottom-quartile margin often signals a competitive disadvantage, but without trend evidence the neutral stance is not directly contradicted—it simply adds a cautionary note.

Frequently Asked Questions

What does the Gross Margin tell investors about LHX?

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 LHX'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.