TXTNEUTRAL

TXT Gross Margin Analysis

18.1%

Updated 57h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after subtracting the direct costs of producing goods, and TXT's 18.1% means it keeps $0.181 of each sales dollar to cover other expenses and profit.

Sector Performance

10th percentile

TXT

18.1%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

18.2%(Jul 2026)

→ Stable

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Deep Analysis

Gross margin is the share of revenue left after subtracting the direct costs of producing goods, and TXT's 18.1% means it keeps $0.181 of each sales dollar to cover other expenses and profit.

This is far below the sector median of 44.2%, placing TXT in the 11th percentile among peers. The year-over-year change and 8-quarter trend are not available, while the quarter-over-quarter change is -0.5%, with historical values of 18.1% and 18.2% (most recent first). The low margin relative to peers indicates weak pricing power or

Frequently Asked Questions

What does the Gross Margin tell investors about TXT?

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 TXT'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.