PDDNEUTRAL

PDD Gross Margin Analysis

55.9%

Higher than 85% of Consumer Cyclical sector peers

Updated 155h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying the direct costs of producing its goods, and PDD's current 55.9% means it retains over half of each sales dollar before other expenses.

Sector Performance

85th percentile

PDD

55.9%

Sector Median

34.2%

Sector Avg

26.4%

Prior Period

55.5%(May 2026)

→ Stable

📊

Deep Analysis

That level is far above the Consumer Cyclical sector median of 33.9%, placing PDD in the 85th percentile of its peers, so the company is a high-margin operator within its industry. The trend is not assessable: the year-over-year change is N/A and the quarter-over-quarter change is N/A, with only a single historical value of 55.9% provided. A high margin at a single point in time, with no trend data, suggests a current efficiency advantage but offers no evidence of momentum or stability. That uncertainty adds some risk, because you cannot confirm whether the margin is improving, holding, or slipping. This metric supports the overall NEUTRAL verdict: the strong level is a positive, yet the missing trend data prevents a more bullish or bearish tilt.

Frequently Asked Questions

What does the Gross Margin tell investors about PDD?

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.

How does PDD's Gross Margin compare to its sector?

PDD's Gross Margin of 55.9% compares to a Consumer Cyclical sector median of 34.2%, placing it in the 85th percentile.

Who are PDD's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: BABA (34.5%), AEO (33.9%), URBN (36.6%), CHWY (30.1%), GME (40.7%).

📚

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.