SNPSNEUTRAL

Gross Margin

72.3%

Updated 30h ago

Sector Performance

88th percentile

SNPS

72.3%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying the direct costs of producing its goods or services.

At 72.3%, SNPS retains more than 72 cents of every dollar in sales, well above the sector median of 44.0% and placing it in the 88th percentile among its industry peers. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 1.6% from the prior quarter's 73.5%. The combination of a very high level of gross margin with a slight recent contraction suggests the company still holds a strong pricing or cost advantage, though the downward move warrants monitoring for any erosion. This metric supports the overall NEUTRAL verdict: the high margin justifies a positive view, but the lack of a clear upward trend and the small QoQ decline keep the assessment balanced.

Frequently Asked Questions

What does the Gross Margin tell investors about SNPS?

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 SNPS'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.