BILL HoldingsBILL +5.63%71 Gross Margin % is 81.62% as of Mar. 2026, which is 7% above its 10-year median of 76.29. GuruFocus rates BILL with a GF Score™ of 71/100 and a GF Value™ of $66.03 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 2,685 Software companies, BILL Holdings ranks better than 89.16% on this metric.
The historical rank and industry rank for BILL Holdings's Gross Margin % or its related term are showing as below:
BILL'
s Gross Margin % Range Over the Past 10 Years
Min: 70.13 Med: 76.29 Max: 81.82
Current: 80.7
During the past 8 years, the highestGross Margin % of BILL Holdings was 81.82%. The lowest was 70.13%. And the median was 76.29%.
BILL's Gross Margin % is ranked better than 89.16% of 2685
companies
in the Software industry
Industry Median: 40.45
vs BILL: 80.70
BILL Holdings had a gross margin of 81.62% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for BILL Holdings was 2.20% per year.
BILL Holdings (NYSE:BILL) 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
BILL Holdings had a gross margin of 81.62% 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.
BILL Holdings Gross Margin % Related Terms
BILL Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for BILL Holdings'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 Software - Application subindustry, BILL Holdings'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.
BILL Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, BILL Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where BILL Holdings'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.
BILL Holdings (BILL) has a Gross Margin % of 81.62% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on BILL Holdings and its competitors. This is near median its historical median of 76.29. Over the past decade, BILL Holdings' Gross Margin % has ranged from 70.13 to 81.82. According to the industry distribution chart, BILL Holdings ranks #291 out of 2685 companies in the Software industry, placing it in the top 10.8%.
Is BILL Holdings' Gross Margin % too high?
BILL Holdings' current Gross Margin % of 81.62% is near median its 10-year median of 76.29. Over the past 10 years, this metric has ranged from a low of 70.13 to a high of 81.82. The Software industry median Gross Margin % is 40.45. BILL Holdings' value of 81.62% is 101.8% above this industry median. Based on the distribution chart, BILL Holdings ranks #291 out of 2685 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, BILL Holdings has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does BILL Holdings' Gross Margin % compare to KC and RNG?
According to the Software industry distribution chart, BILL Holdings ranks #291 out of 2685 companies for Gross Margin %. This places BILL Holdings in the top 11% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. BILL Holdings' value of 81.62% is 101.8% above this benchmark. Historically, BILL Holdings' own Gross Margin % has ranged from 70.13 to 81.82 over the past decade. While the company's 10-year median is 76.29 vs. the industry median of 40.45, BILL Holdings 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 Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,685 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. BILL Holdings's current Gross Margin % of 81.62% is 101.8% 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 BILL Holdings and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BILL Holdings's current Gross Margin % is 81.62%, which is near median its own 10-year median of 76.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BILL Holdings stock overvalued right now?
Based on GuruFocus' analysis, BILL Holdings (BILL) is currently considered Possible Value Trap. The stock's GF Value™ is $66.03, compared to a current price of $35.26 — trading 46.6% below its estimated fair value. The current Gross Margin % is 81.62%, which is near median its 10-year median of 76.29 and 101.8% above the Software industry median of 40.45. BILL Holdings' overall GF Score™ is 71/100 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 BILL Holdings (BILL), the current Gross Margin % is 81.62% 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 BILL Holdings (BILL) Overvalued in 2026?
Based on GuruFocus' analysis, BILL Holdings stock appears to be undervalued.
The current stock price of $35.26 is trading 46.6% below its estimated GF Value™ of $66.03.
GuruFocus considers BILL Holdings to be Possible Value Trap.
Key valuation signals for BILL:
Gross Margin %: 81.62% (near median its 10-year median of 76.29)
GF Value™: $66.03 vs. price of $35.26 (46.6% below fair value)
Industry Position: 101.8% above the Software median (#291 of 2685)
No single metric tells the full story. See the BILL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BILL Holdings Inc is a provider of software-as-a-service, cloud-based payments and spend and expense management products, which allow users to automate accounts payable and accounts receivable transactions, enable businesses to easily connect with their suppliers or customers to do business, eliminate expense reports, manage cash flows and improve back office efficiency. Initial Public Offering and Follow-on Offering.
71GF Score
Get the complete analysis for BILL
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BILL has been successfully added to your 
