TNEUTRAL

Gross Margin

60.1%

Updated 128h ago

Sector Performance

72th percentile

60.1%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying direct costs to produce its goods or services—here, 60.1% means T retains about 60 cents of every dollar of sales.

That figure sits well above the sector median of 44.2%, placing T in the 72nd percentile among its peers, indicating a strong cost advantage or pricing power relative to the industry. Trend data is limited: year-over-year change is not available, but quarter-over-quarter gross margin rose by 7.9% from 55.7% to 60.1%, suggesting recent improvement. The combination of a high gross margin (above sector median) with a positive short-term trend points to lower business risk from cost pressures, though the lack of a longer history limits confidence in the durability of this advantage. This metric supports the overall NEUTRAL verdict—the strong margin level and recent uptick are favorable, but without a multi-year trend or corroborating catalysts, the stock remains appropriately rated as neutral.

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: WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

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.