PYPLNEUTRAL

Gross Margin

45.6%

Updated 414h ago

Sector Performance

52th percentile

PYPL

45.6%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying for the direct costs of producing its goods or services, with 45.6% meaning PayPal retains $0.456 on each dollar of revenue.

This sits above the sector median of 43.2%, placing it at the 54th percentile among peers — slightly better than average but not a standout. Trend data is unavailable: year-over-year change is N/A, quarter-over-quarter change is N/A, and no historical values beyond the current 45.6% were provided. Without a trend, the metric offers a static snapshot: the level alone indicates average cost efficiency relative to peers, but offers no signal of improvement or deterioration. For an investor, this neutral level of gross margin presents neither a clear risk nor a distinct opportunity, as it aligns with the broader sector. This metric supports the overall NEUTRAL verdict because it shows PayPal is performing in line with typical industry margins without any directional shift to suggest a stronger or weaker investment case.

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: EXPD (14.0%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

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.