SWKSCAUTIOUS

SWKS Gross Margin Analysis

40.1%

Updated 57h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying direct production costs; a 40.1% margin means SWKS retains $0.401 of every sales dollar before other expenses.

Sector Performance

39th percentile

SWKS

40.1%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

40.8%(Jul 2026)

↓ Declining

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Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying direct production costs; a 40.1% margin means SWKS retains $0.401 of every sales dollar before other expenses.

That level sits below the sector median of 46.4%, placing the company in the 40th percentile of its peers, so roughly six in ten competitors achieve higher margins. The year-over-year change is not available (N/A), but the quarter-over-quarter change is -1.7%, moving from 40.8% to the current 40.1%. This combination—a margin below the peer midpoint and a sequential decline—points to added cost or pricing pressure that could compress profitability. The short history limits trend confirmation, yet the direction and level work together as a caution flag. This metric directly supports the overall CAUTIOUS verdict, as subpar and slipping gross margin strengthens the case for holding back on buying the stock.

Frequently Asked Questions

What does the Gross Margin tell investors about SWKS?

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 SWKS'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.