UPSNEUTRAL

UPS Gross Margin Analysis

15.8%

Updated 60h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue that remains after deducting the cost of goods sold; a 15.8% margin means UPS keeps less than 16 cents of every sales dollar as profit from its core operations.

Sector Performance

8th percentile

UPS

15.8%

Sector Median

44.6%

Sector Avg

45.5%

Prior Period

17.0%(Apr 2026)

↓ Declining

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Deep Analysis

This level places the company far below its sector peers, where the median gross margin is 44.6%, and lands UPS in the 8th percentile — meaning 92% of sector peers have a higher margin. No year-over-year or quarter-over-quarter changes are available, and the trend direction over the last eight quarters is also not reported, so there is no basis to assess whether the margin is improving or deteriorating. The combination of a very low margin with no trend data implies that the company’s cost structure is a persistent weakness, creating downside risk if competition or input costs pressure it further. This metric contradicts the overall NEUTRAL verdict because a gross margin far below the sector median typically signals a competitive disadvantage that would warrant a more cautious stance.

Frequently Asked Questions

What does the Gross Margin tell investors about UPS?

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 UPS's closest peers by Gross Margin?

The closest peers by Gross Margin include: MSCI (82.7%), SYF (82.7%), EA (82.8%), THC (83.4%), INTU (83.9%).

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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.