WBDCAUTIOUS

WBD Gross Margin Analysis

47.8%

Higher than 27% of Communication Services sector peers

Updated 469h ago·SEC filings & market data

Key Takeaway

The current gross margin of 47.8% means that for every dollar of revenue, WBD keeps about $0.48 after paying the direct costs of producing its content and services.

Sector Performance

27th percentile

WBD

47.8%

Sector Median

53.0%

Sector Avg

58.3%

Prior Period

34.1%(May 2026)

↑ Improving

📊

Deep Analysis

The current gross margin of 47.8% means that for every dollar of revenue, WBD keeps about $0.48 after paying the direct costs of producing its content and services.

This figure sits below the Communication Services sector median of 54.9%, placing WBD in the 24th percentile among its peers. While the year-over-year change is not available, the quarter-over-quarter change is +40.2%, climbing from 34.1% to 47.8% over the last two reported quarters. The combination of a below-median margin and a sharp recent improvement suggests potential for a turnaround, but the limited data makes the trend unreliable for forecasting. This metric directly supports the overall CAUTIOUS verdict, as the current margin still trails sector norms.

Frequently Asked Questions

What does the Gross Margin tell investors about WBD?

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 WBD's Gross Margin compare to its sector?

WBD's Gross Margin of 47.8% compares to a Communication Services sector median of 53.0%, placing it in the 27th percentile.

Who are WBD's closest peers by Gross Margin?

The closest Communication Services peers by Gross Margin include: TWTR (54.0%), NFLX (51.9%), DASH (50.6%), SNAP (56.5%), TWLO (48.6%).

📚

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.