META Gross Margin Analysis
Higher than 100% of Communication Services sector peers
Updated 681h ago·SEC filings & market data
Key Takeaway
Gross margin is the percentage of revenue a company keeps after direct costs of producing its goods or services, so Meta's 81.4% means it retains $0.81 of every dollar in sales before operating expenses.
Sector Performance
100th percentileMETA
81.4%
Sector Median
53.0%
Sector Avg
53.0%
Prior Period
81.9%(Jul 2026)
Deep Analysis
Gross margin is the percentage of revenue a company keeps after direct costs of producing its goods or services, so Meta's 81.4% means it retains $0.81 of every dollar in sales before operating expenses.
That figure towers above the Communication Services sector median of 53.0%, placing Meta in the 80th percentile among its peers. The trend direction is listed as N/A, with no year-over-year change reported, but the quarter-over-quarter change is -0.6%, and the most recent historical values are 81.4% followed by 81.9%. The combination of an exceptionally high margin with only a slight sequential dip points to stable pricing power rather than a deterioration in the business, suggesting limited near-term risk from cost pressure. This metric directly supports the overall BULLISH verdict, as a gross margin far above the sector norm generally signals a competitive advantage and healthy profitability. While the lack of yearly trend data prevents a longer-term assessment, the current level alone remains a positive factor for the stock.
Frequently Asked Questions
What does the Gross Margin tell investors about META?
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.
How does META's Gross Margin compare to its sector?
META's Gross Margin of 81.4% compares to a Communication Services sector median of 53.0%, placing it in the 100th percentile.
Who are META's closest peers by Gross Margin?
The closest Communication Services peers by Gross Margin include: TWTR (54.0%), NFLX (51.9%), GOOGL (61.6%), BIDU (38.9%), VOD (30.5%).
Learn More About Gross Margin
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.
Master META's Valuation
Get the complete institutional research report covering all fundamental and technical metrics.
View full META research report →META
81.4%
Sector Median
53.0%
Sector Avg
53.0%
How META's Gross Margin compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.