PYPLNEUTRAL

PYPL Gross Margin Analysis

44.9%

Updated 321h 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

47th percentile

PYPL

44.9%

Sector Median

46.6%

Sector Avg

47.6%

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.

Who are PYPL'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%).

📚

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.