Definition
The share of each dollar of revenue a company keeps as profit. Gross margin counts only the direct costs of making the product; net margin counts every cost.
The story
A company with $100 of sales and $15 of net profit has a 15% net margin. When AMD reported on Nov 3, 2026, it guided to a fourth-quarter gross margin of about 55%, a touch under estimates, per Reuters. Apple fell on Nov 3 after warning the day before of lower margins as memory chips get more expensive, per the Associated Press (AP).
Why markets watch it
Margins show how well a company turns sales into profit, so investors watch them as closely as revenue.
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We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms