ZSNEUTRAL

ZS Gross Margin Analysis

77.3%

Higher than 70% of Technology sector peers

Updated 36h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying the direct costs of delivering its product, so ZS’s 77.3% means it retains $0.773 on every dollar of sales before operating expenses.

Sector Performance

70th percentile

77.3%

Sector Median

66.3%

Sector Avg

62.2%

Prior Period

76.6%(May 2026)

→ Stable

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Deep Analysis

This sits well above the sector median of 65.7%, placing ZS in the 74th percentile among technology peers, indicating a stronger cost structure than most competitors. The trend is not available: the year-over-year change is N/A and the quarter-over-quarter change is N/A, so there is no data to confirm whether this margin is improving, stable, or eroding. With a high current level but no trend information, the investment risk centers on whether this margin can be sustained; the opportunity is that a 77.3% margin already provides a cushion if costs rise. This metric supports the NEUTRAL verdict: the strong margin is a positive, but the missing trend data prevents a more bullish or bearish call. Therefore, the gross margin alone does not push the stock beyond neutral without evidence of direction.

Frequently Asked Questions

What does the Gross Margin tell investors about ZS?

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 ZS's Gross Margin compare to its sector?

ZS's Gross Margin of 77.3% compares to a Technology sector median of 66.3%, placing it in the 70th percentile.

Who are ZS's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: MDB (72.2%), NVDA (74.9%), CRWD (75.3%), ESTC (75.4%), CRM (76.9%).

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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.