TERNEUTRAL

TER Gross Margin Analysis

59.8%

Updated 105h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue left after paying for the direct costs of producing goods, and TER's current 59.8% means it keeps about 60 cents of every sales dollar as gross profit.

Sector Performance

70th percentile

TER

59.8%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

60.9%(Jul 2026)

↓ Declining

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Deep Analysis

Gross margin is the percentage of revenue left after paying for the direct costs of producing goods, and TER's current 59.8% means it keeps about 60 cents of every sales dollar as gross profit.

This sits well above the sector median of 44.7%, placing the company in the 71st percentile of peers, so it operates with above-average cost efficiency. The trend data is largely unavailable: year-over-year change is N/A, while the quarter-over-quarter change shows a decline of -1.8% from the prior reading of 60.9%. The combination of a high margin with a recent sequential drop suggests strong underlying profitability but a possible short-term pressure on input costs or pricing that merits monitoring. This supports the overall NEUTRAL verdict because the elevated margin level offsets some risk, but the lack of a clear trend and the recent decline prevent a more bullish stance.

Frequently Asked Questions

What does the Gross Margin tell investors about TER?

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 TER'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.