TTWONEUTRAL

TTWO Gross Margin Analysis

57.5%

Updated 201h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after subtracting the direct costs of making and selling a game, so 57.5% means TTWO keeps $0.575 of every sales dollar before other expenses.

Sector Performance

66th percentile

TTWO

57.5%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

55.9%(Aug 2026)

↑ Improving

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Deep Analysis

Gross margin is the share of revenue left after subtracting the direct costs of making and selling a game, so 57.5% means TTWO keeps $0.575 of every sales dollar before other expenses.

This is above the sector median of 46.4%, placing the company at the 67th percentile among peers, indicating a relatively high-cost efficiency compared to the typical competitor. The trend data is limited: the year-over-year change is N/A, but the quarter-over-quarter change is +2.9%, with the most recent value rising from 55.9% to 57.5%. That combination of above-average level and a recent upward move suggests a low near-term margin risk, though the missing annual comparison leaves the durability of this improvement unconfirmed. For an investor, the strong position offers a modest cushion against cost pressure, but it does not clearly signal a reason to be bullish or bearish on the stock overall. This metric directly supports the NEUTRAL verdict: the margin is favorable, yet the incomplete trend and lack of a broader edge keep the assessment balanced.

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: 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.