WDCNEUTRAL

WDC Gross Margin Analysis

50.2%

Updated 132h ago·SEC filings & market data

Key Takeaway

WDC’s gross margin of 50.2% means that for every dollar of revenue, the company keeps about 50.2 cents after covering the direct costs of producing its products — a measure of core profitability.

Sector Performance

59th percentile

WDC

50.2%

Sector Median

44.6%

Sector Avg

45.5%

Prior Period

45.7%(Apr 2026)

↑ Improving

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Deep Analysis

WDC’s gross margin of 50.2% means that for every dollar of revenue, the company keeps about 50.2 cents after covering the direct costs of producing its products — a measure of core profitability.

This figure sits above the sector median of 44.6% and places WDC in the 58th percentile among its sector peers, indicating slightly stronger pricing power or cost efficiency than the typical competitor. The trend data is not available: the year-over-year change is reported as N/A, the quarter-over-quarter change is also N/A, and no historical values beyond the current 50.2% were provided, so no directional insight can be drawn. With the current gross margin above the sector median but lacking any trend information, an investor faces an unclear mix: the level suggests above-average profitability, but the absence of a trend eliminates any forward signal about improving or eroding margins. This metric supports the overall NEUTRAL verdict, as a gross margin that is modestly above the median without a trend neither strongly favors nor undermines a neutral stance on the stock.

Frequently Asked Questions

What does the Gross Margin tell investors about WDC?

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 WDC'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.