Skip to main content
market.news — Markets without borders
Financial Metrics

Gross Margin

Revenue minus cost of goods sold, expressed as a percentage of revenue.

In depth

Software: 70-90% (high). Hardware: 25-45% (medium). Retail: 25-50% (low). Margin expansion or compression often drives stock multiples — investors reward margin gains as evidence of pricing power.

Frequently asked about Gross Margin

What is Gross Margin?

Revenue minus cost of goods sold, expressed as a percentage of revenue. Software: 70-90% (high). Hardware: 25-45% (medium). Retail: 25-50% (low). Margin expansion or compression often drives stock multiples — investors reward margin gains as evidence of pricing power.

Why does Gross Margin matter for investors?

In financial metrics, Gross Margin is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.

How is Gross Margin used in practice?

Software: 70-90% (high). Hardware: 25-45% (medium).

Recent news mentioning Gross Margin

TSMC Sets Gross Margin Record as AI Demand Drives Revenue to All-Time High

The Quick Take * Taiwan Semiconductor achieved an all-time high gross margin, reflecting surging AI chip fabrication demand across major technology clients * TSMC's advanced 3nm and 2nm processes command premium pricing as Apple, Nvidia, and AMD compete for limited capacity * The record performance reinforces TSMC's unrivaled position as the world's most critical semiconductor manufacturer Taiwan Semiconductor Manufacturing Co. posted a landmark financial achievement this week, reporting an

Sep 9, 2026

Berlin Government Data Breach Exposes 5.8TB of Admin Records, IT Expert Cites Gross Negligence

5.8 terabytes of Berlin government administration data were published on the darknet following a cyberattack, with the full scope of the breach still being assessed.

Sep 6, 2026

Nike Stock Down 78% From All-Time High as Gross Margin Recovery Expected From Fiscal Q1 2027

The Quick Take * Nike stock is down 78% from its all-time high, touching new lows that some analysts describe as a potential once-in-a-decade entry point for patient long-term investors * The company expects gross margins to begin expanding in the first quarter of fiscal 2027, signaling that the worst of the margin compression may be approaching an inflection point * The question facing investors is whether margin recovery at Nike translates to meaningful stock re-rating at current depressed

Sep 3, 2026

Genasys Software Revenue Climbs 21% as Gross Margin More Than Doubles to 57.1% in Q3 2026

Genasys Inc (NASDAQ: GNSS) reported software revenue up 21% year-over-year in Q3 2026

Aug 15, 2026

Related terms

Looking for more financial terms?

Browse Full Glossary →