XYLNEUTRAL

XYL Gross Margin Analysis

41.2%

Updated 393h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying direct production costs, so 41.2% means XYL retains $0.412 of every sales dollar for overhead, interest, and profit.

Sector Performance

42th percentile

XYL

41.2%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

37.8%(Jul 2026)

↑ Improving

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Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying direct production costs, so 41.2% means XYL retains $0.412 of every sales dollar for overhead, interest, and profit.

This sits below the sector median of 46.4%, placing XYL at the 43rd percentile among peers, meaning 57% of comparable companies have a higher gross margin. The trend data is not available: the year-over-year change and quarter-over-quarter change are both N/A, and historical values only show the current 41.2%, leaving no basis for momentum assessment. Without a trend, the investment takeaway rests solely on the level, which is modestly below the sector benchmark and suggests a mild cost or pricing disadvantage. This creates some risk if the gap persists, but it is not a strong red flag by itself. The metric slightly tilts negative and does not support an outright bullish case. It aligns with the NEUTRAL verdict, as the below-median margin is a caution but not a decisive negative.

Frequently Asked Questions

What does the Gross Margin tell investors about XYL?

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 XYL'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%).

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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.