VNEUTRAL

V Gross Margin Analysis

76.5%

Higher than 55% of Financial Services sector peers

Updated 273h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue a company keeps after paying direct production costs, so 76.5% means Visa retains $0.765 of every dollar in sales before other expenses.

Sector Performance

55th percentile

76.5%

Sector Median

68.5%

Sector Avg

69.1%

Prior Period

81.3%(Jul 2026)

↓ Declining

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Deep Analysis

Gross margin is the share of revenue a company keeps after paying direct production costs, so 76.5% means Visa retains $0.765 of every dollar in sales before other expenses.

That level sits above the sector median of 66.4%, placing Visa in the 56th percentile among Financial Services peers. The metric is not available for year-over-year comparison (N/A), but quarter-over-quarter it dropped 5.9%, falling from 81.3% to the current 76.5%. This combination—a margin above the peer median but eroding over the latest quarter—points to a steady business that may be facing near-term cost or pricing pressure. The above-median level supports stability, while the negative QoQ change introduces caution, balancing out. This evidence directly supports the overall NEUTRAL verdict, as neither the high margin nor recent decline is strong enough to tilt the view positive or negative.

Frequently Asked Questions

What does the Gross Margin tell investors about V?

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.

How does V's Gross Margin compare to its sector?

V's Gross Margin of 76.5% compares to a Financial Services sector median of 68.5%, placing it in the 55th percentile.

Who are V's closest peers by Gross Margin?

The closest Financial Services peers by Gross Margin include: SLM (68.5%), JPM (64.3%), CACC (63.0%), HDB (58.4%), COF (57.8%).

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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.