Glossary
Gross margin
Gross profit as a percentage of revenue.
Gross margin is gross profit as a percentage of revenue. Gross profit is revenue minus the direct cost of making what was sold, before research, marketing, administration, interest and taxes.
Gross margin = gross profit ÷ revenue × 100
Nvidia reported revenue of $215.9B and gross profit of $153.5B for fiscal 2026, a gross margin of 71.1%. Chip designers that outsource manufacturing tend to have high gross margins; retailers and carmakers have much lower ones because the cost of the goods is most of the price.
Gross margin is the first of three common margins. Operating margin and net margin take out more costs, and the margin calculator shows all three.
Longer explainer: Profit margins
Related terms: Free cash flow, Earnings per share (EPS)
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Disclosures
- Editor holdings
- The editor holds no position in any company named on this page. As of Nov 11, 2026.
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- Sources
- The SEC filings linked next to each figure.
- Last updated
- Nov 11, 2026
General education, the same for every reader. Not a recommendation to buy, sell or hold any security, and it doesn’t consider your situation.