LRCXNEUTRAL

Gross Margin

49.8%

Updated 320h ago

Sector Performance

58th percentile

LRCX

49.8%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

LRCX’s current gross margin of 49.8% means that for every dollar of revenue the company keeps roughly 49.8 cents after paying the direct costs to produce its products, with the rest covering other expenses.

This compares favorably to the sector median of 43.9%, placing LRCX in the 58th percentile among its sector peers — above average but not a standout outlier. There is no available data for the year-over-year change, quarter-over-quarter change, or the trend over the last eight quarters, so the direction of gross margin is unknown. The combination of an above-median gross margin level with a missing trend suggests limited insight into whether the metric is improving or deteriorating, creating neither an explicit risk nor a clear opportunity from this metric alone. This mixed signal is consistent with the overall NEUTRAL verdict, as the strong margin level supports stability while the absence of trend data prevents any stronger conviction.

Frequently Asked Questions

What does the Gross Margin tell investors about LRCX?

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 LRCX'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.