TEL Gross Margin Analysis

Gross margin is the percentage of revenue left after subtracting the direct costs of producing goods, so a 35.6% figure means TEL keeps $0.356 for every $1 of sales before other expenses.

That level sits below the sector median of 44.2% and places the company at the 31st percentile among peers, indicating weaker cost efficiency than most competitors. The year-over-year change is not available, but the quarter-over-quarter change is -3.3%, and the trend direction for the last 8 quarters is not available; the two most recent values show a drop from 36.8% to 35.6%. A gross margin that is both below the sector midpoint and moving downward is a caution flag, suggesting TEL may face rising input costs, pricing pressure, or an unfavorable product mix. This combination increases investment risk because margin compression can erode earnings even if revenue holds steady, though the absence of a longer trend limits the strength of that signal. The metric leans toward a negative assessment, but it does not overturn the overall NEUTRAL verdict — rather, it adds a point of concern that supports staying on the sidelines.

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