METANEUTRAL

META Gross Margin Analysis

81.4%

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 percentile

META

81.4%

Sector Median

53.0%

Sector Avg

53.0%

Prior Period

81.9%(Jul 2026)

→ Stable
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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%).

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.

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META

81.4%

Sector Median

53.0%

Sector Avg

53.0%

How META's Gross Margin compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.