QCOMCAUTIOUS

QCOM Gross Margin Analysis

53.1%

Higher than 40% of TECHNOLOGY sector peers

Updated 437h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company keeps after paying direct production costs, so QCOM's 53.1% means it retains $0.531 of each sales dollar before other expenses.

Sector Performance

40th percentile

QCOM

53.1%

Sector Median

57.3%

Sector Avg

56.5%

Prior Period

53.8%(Jul 2026)

↓ Declining

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying direct production costs, so QCOM's 53.1% means it retains $0.531 of each sales dollar before other expenses.

This exactly matches the sector median of 53.1%, placing QCOM at the 50th percentile among technology peers — a middle-of-the-pack position. The trend is limited: year-over-year change is N/A, but quarter-over-quarter change shows a decline of 1.3%, with gross margin falling from 53.8% to 53.1% in the most recent period. A level equal to the sector average paired with a recent downward move offers no edge over peers and signals that pricing or cost pressures may be building. For an investor, this combination suggests limited opportunity from margin improvement and a modest added risk of further erosion. This metric supports the overall CAUTIOUS verdict, as a flat-to-slipping margin provides no reason to expect stronger profitability ahead.

Frequently Asked Questions

What does the Gross Margin tell investors about QCOM?

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 QCOM's Gross Margin compare to its sector?

QCOM's Gross Margin of 53.1% compares to a TECHNOLOGY sector median of 57.3%, placing it in the 40th percentile.

Who are QCOM's closest peers by Gross Margin?

The closest TECHNOLOGY peers by Gross Margin include: KLAC (61.4%), TXN (61.4%), LRCX (51.7%), NOW (70.7%), INTC (40.4%).

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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.