PCTYNEUTRAL

PCTY Gross Margin Analysis

67.5%

Updated 84h ago·SEC filings & market data

Key Takeaway

PCTY’s gross margin of 72.3% means that for every dollar of revenue, the company retains roughly 72 cents after paying the direct costs of producing its services (like software development and hosting).

Sector Performance

80th percentile

PCTY

67.5%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

72.3%(Jul 2026)

↓ Declining

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Deep Analysis

This is above the sector median of 63.7%, placing PCTY in the 66th percentile among technology peers—indicating a cost advantage relative to many competitors. However, no trend data is available: the year-over-year change, quarter-over-quarter change, and the direction over the last eight quarters are all listed as N/A, so we cannot assess whether this margin is improving or deteriorating. The combination of a high current margin with an unknown trend creates a neutral risk profile—the strong level suggests pricing power and efficient operations, but the lack of trend history means investors have no signal of momentum or erosion. This metric supports the overall NEUTRAL verdict because the margin strength alone does not justify a bullish or bearish stance without insight into its trajectory.

Frequently Asked Questions

What does the Gross Margin tell investors about PCTY?

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 PCTY's closest peers by Gross Margin?

The closest peers by Gross Margin include: HII (12.6%), VLO (12.3%), EXPD (12.3%), LMT (12.2%), EPD (12.1%).

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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.