TXNNEUTRAL

Gross Margin

58.0%

Updated 56h ago

Sector Performance

69th percentile

TXN

58.0%

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 goods—here, 58.0% means TXN retains $0.58 of every dollar of sales.

That figure stands above the sector median of 44.6%, placing TXN in the 69th percentile among its peers, indicating a comparatively strong cost structure. Both the year-over-year and quarter-over-quarter changes are not available, and the trend over the last eight quarters is also not provided, so no directional movement can be assessed. The combination of a high gross margin level with no trend data limits the ability to judge whether this strength is stable or deteriorating, introducing uncertainty. This metric supports the overall NEUTRAL verdict because the strong level is a positive attribute, but the absence of any trend information prevents it from being a clear bullish or bearish signal.

Frequently Asked Questions

What does the Gross Margin tell investors about TXN?

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 TXN'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.