TROWNEUTRAL

Gross Margin

55.1%

Updated 248h ago

Sector Performance

65th percentile

TROW

55.1%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin measures the percentage of revenue a company retains after paying direct production costs; at 55.1%, TROW keeps about 55 cents of every sales dollar.

It sits above the sector median of 44.4%, placing in the 65th percentile among its peers. The metric has been decreasing over the last eight quarters: the year-over-year change is not available, but the quarter-over-quarter drop is -29.6%, and the prior two quarterly values were 78.3% and 98.5%. A gross margin that is still relatively high but declining sharply suggests that while TROW’s core profitability remains above average, the pace of erosion could squeeze future earnings. This combination of an above-median level paired with a steep downward trend introduces moderate risk, as the company must reverse the slide to protect margins. The decreasing trajectory tempers the positive sector comparison, which aligns with the overall NEUTRAL verdict—the metric neither strongly supports nor contradicts a more bullish or bearish stance.

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: 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.