ZBHNEUTRAL

ZBH Gross Margin Analysis

70.8%

Updated 12h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying direct production costs, and ZBH's current 70.8% means it retains $0.708 of every sales dollar before other expenses.

Sector Performance

83th percentile

ZBH

70.8%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

72.4%(Jul 2026)

↓ Declining

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Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying direct production costs, and ZBH's current 70.8% means it retains $0.708 of every sales dollar before other expenses.

That level sits well above the sector median of 46.4%, placing ZBH in the 84th percentile among peers. The metric's trend direction over the last 8 quarters is N/A, and year-over-year change is also N/A; however, the quarter-over-quarter change shows a decline of -2.2%, from 72.4% to 70.8%. A high gross margin paired with a recent quarterly dip suggests the company still has strong pricing power, but the downward move signals some pressure on unit economics that could trim future profitability. This mix of a high but slipping margin does not clearly tilt the risk picture one way, matching the NEUTRAL verdict overall. The metric supports that neutral stance because the level is favorable while the recent direction warrants watchfulness.

Frequently Asked Questions

What does the Gross Margin tell investors about ZBH?

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 ZBH's closest peers by Gross Margin?

The closest peers by Gross Margin include: HII (12.6%), VLO (12.3%), EXPD (12.3%), LMT (12.2%), EPD (12.1%).

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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.