Gross Margin
The percentage of revenue remaining after subtracting the direct cost of goods sold (COGS). Shows how much profit a company makes on its core product before overhead.
Formula
How to Interpret
Software companies typically have 70-90% gross margins (low marginal cost per user). Hardware companies 30-50%. Retail 20-40%. Higher margins mean more room for R&D, sales, and profit.
Why It Matters
Gross margin is the ceiling for profitability. A company with 30% gross margin can never have 40% operating margin. It reveals the fundamental economics of the business model — software scales better than hardware because of this.
Top 10
Bottom 10
Gross Margin by Company
All 90 tracked stocks with reported Gross Margin, ranked highest first on the latest quarter each has reported.
FY — quarters on the company's own off-calendar fiscal year; unprefixed quarters follow the calendar year.