Gross Margin
Higher than 89% of Communication Services sector peers
Updated 22h ago
Sector Performance
89th percentileMETA
81.9%
Sector Median
51.9%
Sector Avg
55.6%
Deep Analysis
Meta Platforms, Inc. (META) has a Gross Margin of 81.9% as of May 2026.
This places META in the 89th percentile of the Communication Services sector, which has a median Gross Margin of 51.9% and a sector average of 55.6%. META's Gross Margin is 57.8% above the sector median, a significant divergence that warrants closer examination. In context: Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.
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 81.9% compares to a Communication Services sector median of 51.9%, placing it in the 89th percentile.
Who are META's closest peers by Gross Margin?
The closest Communication Services peers by Gross Margin include: NFLX (51.9%), DASH (50.6%), TWTR (54.0%), TWLO (48.1%), SNAP (56.5%).
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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81.9%
Sector Median
51.9%
Sector Avg
55.6%
How META's Gross Margin compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.