SPGINEUTRAL

Gross Margin

70.4%

Higher than 55% of Financial Services sector peers

Updated 124h ago

Sector Performance

55th percentile

SPGI

70.4%

Sector Median

68.5%

Sector Avg

67.7%

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Deep Analysis

Gross margin measures the percentage of revenue a company retains after paying direct costs of producing its services; at 70.4%, SPGI keeps about 70 cents of every dollar after those costs.

This places it slightly above the sector median of 68.5% and in the 55th percentile among financial services peers. No trend data is available—the year-over-year change, quarter-over-quarter change, and last eight quarters are all listed as N/A, so only the current single value exists. With a stable, above-median margin but no trend to confirm direction, the metric suggests moderate competitive cost control without indicating momentum or deterioration. This level alone neither strengthens nor weakens the NEUTRAL verdict, as it supports a baseline expectation of average profitability relative to peers but lacks the directional insight needed to shift the rating.

Frequently Asked Questions

What does the Gross Margin tell investors about SPGI?

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 SPGI's Gross Margin compare to its sector?

SPGI's Gross Margin of 70.4% compares to a Financial Services sector median of 68.5%, placing it in the 55th percentile.

Who are SPGI's closest peers by Gross Margin?

The closest Financial Services peers by Gross Margin include: SLM (68.5%), JPM (64.3%), IBN (73.6%), HDB (58.4%), COF (57.8%).

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.