S&P 500 Aggregate Gross Profit Margin (TTM)

Live value temporarily unavailable.

Source: Company filings (aggregated)

Data updated daily

What it measures

The S&P 500 gross margin measures aggregate gross profit as a percentage of aggregate revenue for index constituents on a trailing-twelve-month basis. Gross profit is revenue minus cost of goods sold; it represents the income available to cover operating expenses before selling, administrative, R&D, and financing costs. A gross margin of 45% means that for every $100 of revenue, the index retains $45 after direct production costs.

Why it matters

Gross margin is the first and most fundamental test of pricing power and cost efficiency. A sustained expansion signals either improving pricing leverage — the ability to raise prices faster than input costs — or structural cost reductions in production. At the index level, gross margin trends reflect the sector mix of the S&P 500: a rising share of high-margin software and services companies mechanically lifts the aggregate even without per-company improvement. Separating the structural mix effect from genuine pricing gains is therefore essential when interpreting index-level gross margin trends over multi-decade periods.

How it is calculated

Gross Margin (TTM) = Σ TTM Gross Profit ÷ Σ TTM Revenue × 100

LENSE computes the S&P 500 gross margin as the ratio of aggregate TTM gross profit to aggregate TTM revenue — not a simple average of per-company margins. Gross profit per constituent is sourced from as-reported quarterly income statements; TTM figures are constructed by summing the four most recently reported quarters. Constituents with zero or negative revenue are excluded. Index constituency is determined point-in-time, ensuring that sector composition changes are reflected as of each historical date.

Recent (monthly)

Recent data unavailable.

Data source: Company filings (aggregated). Computed and published by LENSE Analytics.