PYPL Gross Margin Analysis
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 percentilePYPL
44.9%
Sector Median
47.4%
Sector Avg
48.1%
Prior Period
45.6%(Jul 2026)
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.
Learn More About Gross Margin
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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44.9%
Sector Median
47.4%
Sector Avg
48.1%
How PYPL's Gross Margin compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.