MTSINEUTRAL

MTSI Gross Margin Analysis

58.3%

Updated 132h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after paying direct production costs, so 58.3% means MTSI keeps 58.3 cents of each sales dollar before other expenses.

Sector Performance

68th percentile

MTSI

58.3%

Sector Median

46.8%

Sector Avg

47.7%

Prior Period

56.9%(Aug 2026)

↑ Improving

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Deep Analysis

Gross margin is the share of revenue left after paying direct production costs, so 58.3% means MTSI keeps 58.3 cents of each sales dollar before other expenses.

That figure sits well above the sector median of 46.4%, placing the company in the 69th percentile of peers. The overall trend is marked N/A, with no year-over-year change available, but quarter-over-quarter the margin rose 2.5 percentage points from 56.9% to 58.3%. The level is strong relative to peers, and the recent quarterly improvement adds a positive tilt, yet only two data points limit confidence in the direction. This combination suggests moderate opportunity from above-average profitability, but the lack of a longer track record introduces some uncertainty. Overall, the metric supports the NEUTRAL verdict: favorable positioning is real, but the thin history prevents a more bullish call.

Frequently Asked Questions

What does the Gross Margin tell investors about MTSI?

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 MTSI's closest peers by Gross Margin?

The closest peers by Gross Margin include: MU (84.6%), CDNS (84.9%), TEAM (85.3%), VRTX (85.3%), INSP (85.5%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

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.