TTWONEUTRAL

Gross Margin

55.9%

Updated 560h ago

Sector Performance

66th percentile

TTWO

55.9%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying for the direct costs of producing its products—here, 55.9% for each dollar of sales.

This places TTWO well above the sector median of 43.8%, in the 66th percentile of peer companies. The year-over-year change is not available, but compared to the prior quarter, margin improved by 0.4 percentage points from 55.7% to 55.9%; no longer-term trend can be assessed with only two data points. The combination of a high margin level relative to peers and a small sequential increase suggests a stable cost structure, but the lack of historical context means the opportunity is modest and the investment risk is low. This metric supports the overall NEUTRAL verdict: the gross margin is solid without being outlier strength, and the limited trend offers no reason to upgrade or downgrade the stock.

Frequently Asked Questions

What does the Gross Margin tell investors about TTWO?

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 TTWO'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.