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American WellAMWL +0.17%50 Gross Margin % is 52.95% as of Jun. 2026, which is 27% above its 10-year median of 41.70. GuruFocus rates AMWL with a GF Score™ of 50/100 and a GF Value™ of $6.41 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 632 Healthcare Providers & Services companies, American Well ranks better than 62.82% on this metric.
The historical rank and industry rank for American Well's Gross Margin % or its related term are showing as below:
AMWL'
s Gross Margin % Range Over the Past 10 Years
Min: 36.07 Med: 41.7 Max: 53.29
Current: 51.88
During the past 8 years, the highestGross Margin % of American Well was 53.29%. The lowest was 36.07%. And the median was 41.70%.
AMWL's Gross Margin % is ranked better than 62.82% of 632
companies
in the Healthcare Providers & Services industry
Industry Median: 40.245
vs AMWL: 51.88
American Well had a gross margin of 52.95% for the quarter that ended in Jun. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for American Well was 4.80% per year.
American Well (NYSE:AMWL) 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
American Well had a gross margin of 52.95% for the quarter that ended in Jun. 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.
American Well Gross Margin % Related Terms
American Well Gross Margin % Historical Data
* Premium members only.
The historical data trend for American Well's Gross Margin % can be seen below:
* 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.
For the Health Information Services subindustry, American Well'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.
American Well Gross Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, American Well's Gross Margin % distribution charts can be found below:
* The bar in red indicates where American Well'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.
American Well (AMWL) has a Gross Margin % of 52.95% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on American Well and its competitors. This is 27% above median its historical median of 41.70. Over the past decade, American Well's Gross Margin % has ranged from 36.07 to 53.29. According to the industry distribution chart, American Well ranks #235 out of 632 companies in the Healthcare Providers & Services industry, placing it in the top 37.2%.
Is American Well's Gross Margin % too high?
American Well's current Gross Margin % of 52.95% is 27% above median its 10-year median of 41.70. Over the past 10 years, this metric has ranged from a low of 36.07 to a high of 53.29. The Healthcare Providers & Services industry median Gross Margin % is 40.25. American Well's value of 52.95% is 31.6% above this industry median. Based on the distribution chart, American Well ranks #235 out of 632 companies in the Healthcare Providers & Services industry, which is above the industry midpoint. Overall, American Well has a GF Score™ of 50/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does American Well's Gross Margin % compare to LFMD and SY?
According to the Healthcare Providers & Services industry distribution chart, American Well ranks #235 out of 632 companies for Gross Margin %. This puts American Well in the upper half of its industry. The industry median Gross Margin % is 40.25. American Well's value of 52.95% is 31.6% above this benchmark. Historically, American Well's own Gross Margin % has ranged from 36.07 to 53.29 over the past decade. While the company's 10-year median is 41.70 vs. the industry median of 40.25, American Well 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 Healthcare Providers & Services company?
The median Gross Margin % among Healthcare Providers & Services companies is 40.25, based on 632 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. American Well's current Gross Margin % of 52.95% is 31.6% 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 American Well and its competitors. For the Healthcare Providers & Services industry, the median Gross Margin % is 40.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Well's current Gross Margin % is 52.95%, which is 27% above median its own 10-year median of 41.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Well stock overvalued right now?
Based on GuruFocus' analysis, American Well (AMWL) is currently considered Significantly Overvalued. The stock's GF Value™ is $6.41, compared to a current price of $11.92 — trading 86% above its estimated fair value. The current Gross Margin % is 52.95%, which is 27% above median its 10-year median of 41.70 and 31.6% above the Healthcare Providers & Services industry median of 40.25. American Well's overall GF Score™ is 50/100 with 3 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 American Well (AMWL), the current Gross Margin % is 52.95% as of Jun. 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 American Well (AMWL) Overvalued in 2026?
Based on GuruFocus' analysis, American Well stock appears to be overvalued.
The current stock price of $11.92 is trading 86% above its estimated GF Value™ of $6.41.
GuruFocus considers American Well to be Significantly Overvalued.
Key valuation signals for AMWL:
Gross Margin %: 52.95% (27% above median its 10-year median of 41.70)
GF Value™: $6.41 vs. price of $11.92 (86% above fair value)
Industry Position: 31.6% above the Healthcare Providers & Services median (#235 of 632)
No single metric tells the full story. See the AMWL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
American Well Corp is an enterprise platform and software company digitally enabling hybrid care by offering payers and health systems a technology-enabled care platform. The Amwell Platform, its cloud-based enablement platform, digitally enables a scalable healthcare experience across all care settings by enabling critical services like virtual primary care, urgent care, clinical partner programs, scheduling visits, etc. Additionally, the healthcare providers can use the platform to access familiar workflows for taking notes, prescribing, referencing clinical treatment guidelines, and other related activities. The firm also offers various paid services, including licensed clinical staffing, implementation support, workflow design, etc, to help clients execute their hybrid care strategies.
50GF Score
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