QCOMCAUTIOUS

Gross Margin

53.8%

Higher than 39% of Technology sector peers

Updated 533h ago

Sector Performance

39th percentile

QCOM

53.8%

Sector Median

65.2%

Sector Avg

60.4%

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Deep Analysis

QUALCOMM's current Gross Margin of 53.8% means that for every dollar of revenue, the company keeps about 53.8 cents after paying the direct costs of producing its chips and software.

This sits below the sector median of 65.2%, placing QUALCOMM in the 38th percentile among technology peers, indicating it earns a lower margin than most competitors. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 1.5% from the previous value of 54.6%. The combination of a Gross Margin that is below the sector median and has recently edged lower suggests a slight headwind to profitability, though the decline is small. This metric partially contradicts the overall NEUTRAL verdict by highlighting below-average pricing power or cost structure relative to peers, but the modest drop does not warrant a bearish stance on its own.

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 53.8% compares to a Technology sector median of 65.2%, placing it in the 39th percentile.

Who are QCOM's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: ONTO (50.1%), SHOP (48.8%), LSPD (44.4%), GRAB (43.4%), APLD (42.5%).

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.