TNEUTRAL

T Gross Margin Analysis

61.8%

Updated 33h ago·SEC filings & market data

Key Takeaway

The gross margin of 61.8% means that for every dollar of revenue, T keeps $0.618 after covering the direct costs of producing its goods or services.

Sector Performance

72th percentile

61.8%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

60.1%(Jul 2026)

↑ Improving

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Deep Analysis

The gross margin of 61.8% means that for every dollar of revenue, T keeps $0.618 after covering the direct costs of producing its goods or services.

This is well above the sector median of 44.6%, placing T in the 75th percentile among its peers. Over the last eight quarters the trend has been increasing, with the most recent quarter-over-quarter change of +2.8% (year-over-year data is not available). A high gross margin that is also rising typically signals improving pricing power or cost control, which can reduce investment risk. However, the overall stock verdict is NEUTRAL, and this metric alone does not contradict that view—a strong gross margin is a positive, but other factors may be balancing the outlook.

Frequently Asked Questions

What does the Gross Margin tell investors about T?

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 T'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.