Array Digital InfrastructureAD +3.29%66 Gross Margin % is 58.45% as of Mar. 2026, which is 9% above its 10-year median of 53.68. GuruFocus rates AD with a GF Score™ of 66/100 and a GF Value™ of $64.11 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 344 Telecommunication Services companies, Array Digital Infrastructure ranks better than 59.59% on this metric.
Array Digital Infrastructure (NYSE:AD) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Array Digital Infrastructure had a gross margin of 58.45% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Array Digital Infrastructure Gross Margin % Related Terms
Array Digital Infrastructure Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AD vs TDS, LBTYA, LBRDA: Gross Margin % Comparison
For the Telecom Services subindustry, Array Digital Infrastructure's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Array Digital Infrastructure Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Array Digital Infrastructure's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Array Digital Infrastructure's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Array Digital Infrastructure (AD) has a Gross Margin % of 58.45% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Array Digital Infrastructure and its competitors. This is near median its historical median of 53.68. Over the past decade, Array Digital Infrastructure's Gross Margin % has ranged from 29.08 to 57.47. According to the industry distribution chart, Array Digital Infrastructure ranks #139 out of 344 companies in the Telecommunication Services industry, placing it in the top 40.4%.
Is Array Digital Infrastructure's Gross Margin % too high?
Array Digital Infrastructure's current Gross Margin % of 58.45% is near median its 10-year median of 53.68. Over the past 10 years, this metric has ranged from a low of 29.08 to a high of 57.47. The Telecommunication Services industry median Gross Margin % is 51.42. Array Digital Infrastructure's value of 58.45% is 13.7% above this industry median. Based on the distribution chart, Array Digital Infrastructure ranks #139 out of 344 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Array Digital Infrastructure has a GF Score™ of 66/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Array Digital Infrastructure's Gross Margin % compare to TDS and LBTYA?
According to the Telecommunication Services industry distribution chart, Array Digital Infrastructure ranks #139 out of 344 companies for Gross Margin %. This puts Array Digital Infrastructure in the upper half of its industry. The industry median Gross Margin % is 51.42. Array Digital Infrastructure's value of 58.45% is 13.7% above this benchmark. Historically, Array Digital Infrastructure's own Gross Margin % has ranged from 29.08 to 57.47 over the past decade. While the company's 10-year median is 53.68 vs. the industry median of 51.42, Array Digital Infrastructure has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.42, based on 344 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Array Digital Infrastructure's current Gross Margin % of 58.45% is 13.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Array Digital Infrastructure and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Array Digital Infrastructure's current Gross Margin % is 58.45%, which is near median its own 10-year median of 53.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Array Digital Infrastructure stock overvalued right now?
Based on GuruFocus' analysis, Array Digital Infrastructure (AD) is currently considered Possible Value Trap. The stock's GF Value™ is $64.11, compared to a current price of $37.07 — trading 42.2% below its estimated fair value. The current Gross Margin % is 58.45%, which is near median its 10-year median of 53.68 and 13.7% above the Telecommunication Services industry median of 51.42. Array Digital Infrastructure's overall GF Score™ is 66/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Array Digital Infrastructure (AD), the current Gross Margin % is 58.45% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Array Digital Infrastructure (AD) Overvalued in 2026?
Based on GuruFocus' analysis, Array Digital Infrastructure stock appears to be undervalued.
The current stock price of $37.07 is trading 42.2% below its estimated GF Value™ of $64.11.
GuruFocus considers Array Digital Infrastructure to be Possible Value Trap.
Key valuation signals for AD:
Gross Margin %: 58.45% (near median its 10-year median of 53.68)
GF Value™: $64.11 vs. price of $37.07 (42.2% below fair value)
Industry Position: 13.7% above the Telecommunication Services median (#139 of 344)
No single metric tells the full story. See the AD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Array Digital Infrastructure, formerly US Cellular, sold its regional wireless operations serving about 4.4 million customers to T-Mobile in August 2025. The firm has agreed to sell most of its remaining spectrum licenses; however, it will still retain rights to C-band spectrum in several locations after these deals are closed. Array also owns a 5.5% stake in Verizon Wireless' Los Angeles operations, as well as other smaller wireless partnership interests in Oklahoma and upstate New York. The firm still operates a portfolio of about 4,400 wireless towers. Parent TDS has proposed to acquire the portion of Array that it doesn't already own in an all-stock transaction.
66GF Score
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