WTWNEUTRAL

WTW Gross Margin Analysis

37.1%

Updated 9h ago·SEC filings & market data

Key Takeaway

Gross margin measures the share of revenue left after direct production costs, so 37.1% means WTW keeps $0.371 for every dollar of sales before other expenses.

Sector Performance

33th percentile

WTW

37.1%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

40.5%(Jul 2026)

↓ Declining

📊

Deep Analysis

Gross margin measures the share of revenue left after direct production costs, so 37.1% means WTW keeps $0.371 for every dollar of sales before other expenses.

That level sits below the sector median of 46.4%, placing WTW in the 34th percentile among peers. The year-over-year change is N/A, and the quarter-over-quarter change is -8.4%, with the most recent value down from 40.5% in the prior quarter. A below-median margin combined with a recent quarterly decline points to cost pressure or softer pricing, adding downside risk to the stock. This metric alone does not decide the outlook, but it does not support an upbeat case. It aligns with the overall NEUTRAL verdict, since the margin level and trend warrant caution without confirming a clear negative thesis.

Frequently Asked Questions

What does the Gross Margin tell investors about WTW?

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 WTW'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%).

📚

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.