ONCAUTIOUS

ON Gross Margin Analysis

38.5%

Updated 444h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue that remains after deducting the cost of goods sold, showing how efficiently a company produces its products.

Sector Performance

41th percentile

38.5%

Sector Median

44.6%

Sector Avg

45.5%

Prior Period

34.9%(Apr 2026)

↑ Improving

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Deep Analysis

Gross margin is the percentage of revenue that remains after deducting the cost of goods sold, showing how efficiently a company produces its products.

ON currently has a gross margin of 38.5%, which is below the sector median of 44.2% and places it in the 41st percentile among its peers. No trend data is available: the year-over-year change is listed as N/A, the quarter-over-quarter change is N/A, and there is only one historical value (38.5%). Because the gross margin is both below the sector median and lacks any observed trend, investors cannot assess momentum in cost efficiency, adding uncertainty. This combination of a below-median level with no trend suggests a neutral to slightly elevated investment risk, as the company's cost structure may be less favorable than peers' but no directional change is known. The 38.5% gross margin, being weaker than the sector average, supports the overall CAUTIOUS verdict by highlighting a competitive disadvantage in profitability at the product level.

Frequently Asked Questions

What does the Gross Margin tell investors about ON?

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 ON's closest peers by Gross Margin?

The closest peers by Gross Margin include: MSCI (82.7%), SYF (82.7%), EA (82.8%), THC (83.4%), INTU (83.9%).

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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.