Gross profit margin
The share of revenue left after the direct cost of making what was sold.
Gross margin shows how much each sale is worth before overheads such as research, marketing and administration. Software and drug companies often keep 70% or more; retailers and manufacturers far less.
A stable or rising gross margin usually points to pricing power. A falling one can mean competition, rising input costs or a shift toward lower-margin products. Compare with operating margin to see how much the overheads take.
Gross margin across the S&P 500 today
313 companies with a meaningful value, as of Oct 11, 2026. Full ranked list.
Highest in the S&P 500
| CenterPoint Energy Inc CNP | 100.0% |
|---|---|
| VICI Properties Inc VICI | 99.3% |
| Incyte Corporation INCY | 92.5% |
| Reddit, Inc. RDDT | 91.4% |
| Autodesk Inc ADSK | 91.2% |
| Expedia Group Inc. EXPE | 90.4% |
| Adobe Systems Incorporated ADBE | 89.2% |
| Elevance Health Inc ELV | 89.1% |
| UnitedHealth Group Incorporated UNH | 88.6% |
| VeriSign Inc VRSN | 88.5% |
Lowest in the S&P 500
| McKesson Corporation MCK | 3.6% |
|---|---|
| Cardinal Health Inc CAH | 3.8% |
| Cencora Inc. COR | 4.0% |
| Bunge Limited BG | 4.4% |
| The Boeing Company BA | 4.7% |
| Tyson Foods Inc TSN | 6.1% |
| Dow Inc DOW | 6.4% |
| Archer-Daniels-Midland Company ADM | 6.9% |
| Valero Energy Corporation VLO | 8.0% |
| Ford Motor Company F | 8.0% |
Median gross margin by sector
S&P 500 companies only. Sectors differ a lot, so compare a company with its own sector first.
| Sector | Median | Companies |
|---|---|---|
| Financial Services | 67.3% | 6 |
| Utilities | 65.7% | 9 |
| Healthcare | 65.0% | 49 |
| Communication Services | 60.9% | 7 |
| Technology | 56.3% | 78 |
| Real Estate | 51.5% | 9 |
| Energy | 43.2% | 9 |
| Consumer Defensive | 39.1% | 29 |
| Industrials | 38.1% | 50 |
| Consumer Cyclical | 38.1% | 38 |
| Basic Materials | 36.2% | 15 |
Questions
What is Gross margin?
The share of revenue left after the direct cost of making what was sold.
How is Gross margin calculated?
Gross margin = (revenue − cost of revenue) ÷ revenue.
What is a normal gross margin?
Across 313 S&P 500 companies, the median is 47.2%; the middle half sits between 33.0% and 65.0%. It varies a lot by sector.
Related terms
Live figures from the latest prices and SEC filings. Information only, not investment advice. Updated October 9, 2026.