SNPSNEUTRAL

SNPS Gross Margin Analysis

72.3%

Updated 57h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying the direct costs of producing its goods or services, so SNPS retains 72.3 cents per dollar of sales after those costs.

Sector Performance

85th percentile

SNPS

72.3%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

73.5%(Apr 2026)

↓ Declining

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Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying the direct costs of producing its goods or services, so SNPS retains 72.3 cents per dollar of sales after those costs.

This sits well above the sector median of 46.4%, placing the company in the 86th percentile of its peer group. The trend data are not available: both the year-over-year change and quarter-over-quarter change are N/A, and the historical series shows only the current 72.3% figure with no prior values to compare. The high margin relative to peers signals a possible competitive advantage, but the absence of trend data means there is no evidence of whether that advantage is growing, stable, or eroding. This translates into a neutral risk profile: the strong margin level is a positive, but the lack of direction introduces uncertainty. That combination directly supports the overall NEUTRAL verdict, as the metric justifies neither a bullish nor bearish tilt on its own.

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: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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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.