MDTNEUTRAL

Gross Margin

65.4%

Updated 54h ago

Sector Performance

81th percentile

MDT

65.4%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin represents the percentage of revenue a company retains after covering the cost of goods sold; MDT’s current 65.4% means it keeps roughly 65.4 cents from every dollar of sales.

This level is well above the sector median of 44.6%, placing MDT in the 81st percentile among its peers. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 13.8%, falling from 75.9% to 65.4% in the most recent period. While a high gross margin relative to peers signals strong pricing power or cost efficiency, the steep quarterly drop suggests recent pressure on profitability that could erode that advantage. This mix of an elevated level but a clear downward trend introduces near-term risk if the compression continues, though it may be a temporary blip. The NEUTRAL verdict is supported because the strong margin percentile justifies holding the stock, while the negative quarterly change contradicts unqualified optimism, keeping the overall stance balanced.

Frequently Asked Questions

What does the Gross Margin tell investors about MDT?

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 MDT's closest peers by Gross Margin?

The closest peers by Gross Margin include: EXPD (14.0%), 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.