NOWCAUTIOUS

Gross Margin

75.1%

Updated 58h ago

Sector Performance

90th percentile

NOW

75.1%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

A company’s gross margin is the percentage of revenue it keeps after paying direct costs to produce its goods or services; a 75.1% gross margin means nearly three-quarters of every dollar in sales is profit before other expenses.

That figure puts the company in the 90th percentile among sector peers, more than 30 percentage points above the sector median of 44.6%. Because the year-over-year change, quarter-over-quarter change, and trend over the last eight quarters are all listed as not available, there is no historical data to assess whether this high margin is stable or deteriorating. The combination of an exceptionally high gross margin with no trend information creates uncertainty: the current level signals strong pricing power or cost efficiency, but investors cannot evaluate whether that advantage is eroding or improving without a historical baseline. This metric partially contradicts the overall CAUTIOUS verdict, as a 90th-percentile margin typically suggests a wide competitive moat and lower risk, yet the absence of trend data prevents full confidence in the sustainability of that position.

Frequently Asked Questions

What does the Gross Margin tell investors about NOW?

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 NOW's closest peers by Gross Margin?

The closest peers by Gross Margin include: WHR (12.7%), 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.