SONEUTRAL

SO Gross Margin Analysis

51.3%

Updated 33h ago·SEC filings & market data

Key Takeaway

Gross margin, the share of revenue left after paying direct production costs, stands at 51.3%.

Sector Performance

57th percentile

51.3%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

46.5%(Jul 2026)

↑ Improving

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Deep Analysis

Gross margin, the share of revenue left after paying direct production costs, stands at 51.3%.

That places SO above its sector median of 44.6%, and the company sits at the 60th percentile among peers. The year-over-year change is not available, but the quarter-over-quarter move is a gain of 10.3 percentage points, rising from 46.5% to 51.3%. The level is healthy relative to the sector, and the recent jump suggests improving cost control or pricing power, though the short history limits confidence in a lasting trend. This combination of above-median profitability and a positive quarterly shift lowers near-term downside risk. The metric supports the overall NEUTRAL verdict: solid but not exceptional, with no evidence yet of a sustained edge.

Frequently Asked Questions

What does the Gross Margin tell investors about SO?

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 SO'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.