PAYXNEUTRAL

PAYX Gross Margin Analysis

74.0%

Updated 273h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after covering the direct costs of delivering a service, and PAYX's 74.0% means it keeps 74 cents of every dollar earned from its core operations.

Sector Performance

87th percentile

PAYX

74.0%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

76.2%(Apr 2026)

↓ Declining

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Deep Analysis

Gross margin is the share of revenue left after covering the direct costs of delivering a service, and PAYX's 74.0% means it keeps 74 cents of every dollar earned from its core operations.

That figure is far above the sector median of 46.4%, placing PAYX in the 88th percentile among its sector peers. The trend is not available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and no historical values beyond the current 74.0% are provided. With a high margin but no trend data, the investment picture offers a clear current profitability advantage, yet no evidence of whether that advantage is widening or narrowing. This leaves the risk-opportunity balance dependent on a single snapshot rather than a direction. The metric supports the overall NEUTRAL verdict because the strong margin is a positive factor, but the absence of trend information prevents any stronger bias.

Frequently Asked Questions

What does the Gross Margin tell investors about PAYX?

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 PAYX's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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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.