PYPLNEUTRAL

PYPL Gross Margin Analysis

44.9%

Updated 963h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after covering direct production costs; at 44.9%, PYPL keeps $0.449 of each sales dollar before other expenses.

Sector Performance

46th percentile

PYPL

44.9%

Sector Median

47.4%

Sector Avg

48.1%

Prior Period

45.6%(Jul 2026)

↓ Declining
📊

Deep Analysis

Gross margin is the share of revenue left after covering direct production costs; at 44.9%, PYPL keeps $0.449 of each sales dollar before other expenses.

That level sits 1.5 percentage points below the sector median of 46.4%, placing the company at the 47th percentile among peers. Year-over-year change is unavailable, and the eight-quarter trend is also unavailable, but quarter-over-quarter margin fell 1.5% from 45.6% to 44.9%. The combination of a modestly below-median level and a recent quarterly decline points to mild margin pressure, though the drop is small and does not signal a large operational shift. This creates a limited downside risk, balanced against a level still close to the sector midpoint. The metric neither strongly supports nor contradicts the overall NEUTRAL verdict, since the current margin and its direction are consistent with an average, stable position.

Frequently Asked Questions

What does the Gross Margin tell investors about PYPL?

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.

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.

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PYPL

44.9%

Sector Median

47.4%

Sector Avg

48.1%

How PYPL's Gross Margin compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.