TROWNEUTRAL

TROW Gross Margin Analysis

46.9%

Updated 57h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying the direct costs of producing its services, and TROW's current 46.9% means it retains that share as gross profit.

Sector Performance

50th percentile

TROW

46.9%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

55.1%(Jul 2026)

↓ Declining

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Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying the direct costs of producing its services, and TROW's current 46.9% means it retains that share as gross profit.

Compared to sector peers, TROW sits slightly above the sector median of 45.6%, placing at the 52nd percentile. The trend data is incomplete: the year-over-year change is N/A and the 8-quarter direction is N/A, but the quarter-over-quarter change shows a drop of -14.9% from 55.1% to 46.9%. A margin near the sector average with a sharp recent decline suggests near-term pressure on profitability, but the level itself is not alarming relative to peers. This combination points to moderate risk: the falling QoQ figure warrants monitoring, while the peer-consistent level limits downside surprise. This metric supports the overall NEUTRAL verdict, as it neither signals a clear competitive advantage nor a severe deterioration.

Frequently Asked Questions

What does the Gross Margin tell investors about TROW?

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 TROW'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.