BT GroupCHIX:BTL +0.31%67 Gross Margin % is 73.63% as of Mar. 2026, which is 2% above its 10-year median of 72.29. GuruFocus rates CHIX:BTL with a GF Score™ of 67/100 and a GF Value™ of £1.38 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 344 Telecommunication Services companies, BT Group ranks better than 85.76% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. BT Group's Gross Profit for the
six
months ended in Mar. 2026 was £7,248 Mil. BT Group's Revenue for the
six
months ended in Mar. 2026 was £9,844 Mil. Therefore, BT Group's Gross Margin % for the quarter that ended in Mar. 2026 was 73.63%.
The historical rank and industry rank for BT Group's Gross Margin % or its related term are showing as below:
CHIX:BTl'
s Gross Margin % Range Over the Past 10 Years
Min: 64.2 Med: 72.29 Max: 74.39
Current: 74.12
During the past 13 years, the highestGross Margin % of BT Group was 74.39%. The lowest was 64.20%. And the median was 72.29%.
CHIX:BTl's Gross Margin % is ranked better than 85.76% of 344
companies
in the Telecommunication Services industry
Industry Median: 51.415
vs CHIX:BTl: 74.12
BT Group had a gross margin of 73.63% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for BT Group was 0.30% per year.
BT Group (CHIX:BTl) 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
BT Group had a gross margin of 73.63% 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.
BT Group Gross Margin % Related Terms
BT Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for BT Group'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.
CHIX:BTL vs TMUS, VZ, T: Gross Margin % Comparison
For the Telecom Services subindustry, BT Group'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.
BT Group Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, BT Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where BT Group'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.
BT Group (CHIX:BTL) has a Gross Margin % of 73.63% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on BT Group and its competitors. This is near median its historical median of 72.29. Over the past decade, BT Group's Gross Margin % has ranged from 64.20 to 74.39. According to the industry distribution chart, BT Group ranks #49 out of 344 companies in the Telecommunication Services industry, placing it in the top 14.2%.
Is BT Group's Gross Margin % too high?
BT Group's current Gross Margin % of 73.63% is near median its 10-year median of 72.29. Over the past 10 years, this metric has ranged from a low of 64.20 to a high of 74.39. The Telecommunication Services industry median Gross Margin % is 51.42. BT Group's value of 73.63% is 43.2% above this industry median. Based on the distribution chart, BT Group ranks #49 out of 344 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, BT Group has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does BT Group's Gross Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, BT Group ranks #49 out of 344 companies for Gross Margin %. This places BT Group in the top 14% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 51.42. BT Group's value of 73.63% is 43.2% above this benchmark. Historically, BT Group's own Gross Margin % has ranged from 64.20 to 74.39 over the past decade. While the company's 10-year median is 72.29 vs. the industry median of 51.42, BT Group 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. BT Group's current Gross Margin % of 73.63% is 43.2% 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 BT Group 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. BT Group's current Gross Margin % is 73.63%, which is near median its own 10-year median of 72.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BT Group stock overvalued right now?
Based on GuruFocus' analysis, BT Group (CHIX:BTL) is currently considered Significantly Overvalued. The stock's GF Value™ is £1.38, compared to a current price of £1.93 — trading 40.1% above its estimated fair value. The current Gross Margin % is 73.63%, which is near median its 10-year median of 72.29 and 43.2% above the Telecommunication Services industry median of 51.42. BT Group's overall GF Score™ is 67/100 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 BT Group (CHIX:BTL), the current Gross Margin % is 73.63% 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 BT Group (CHIX:BTL) Overvalued in 2026?
Based on GuruFocus' analysis, BT Group stock appears to be overvalued.
The current stock price of £1.93 is trading 40.1% above its estimated GF Value™ of £1.38.
GuruFocus considers BT Group to be Significantly Overvalued.
Key valuation signals for CHIX:BTL:
Gross Margin %: 73.63% (near median its 10-year median of 72.29)
GF Value™: £1.38 vs. price of £1.93 (40.1% above fair value)
Industry Position: 43.2% above the Telecommunication Services median (#49 of 344)
No single metric tells the full story. See the CHIX:BTL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BT Group is the incumbent telecommunications operator in the UK. BT is the owner of Openreach, the largest fixed-line network in the country. Openreach operates as a separate entity due to regulatory requirements, but is still 100% owned by BT. Openreach has accelerated its fiber investments and expects to have 90% of the UK covered with FTTH by 2026. In the consumer division, BT has approximately 30% market share in broadband and mobile services. The enterprise segment serves large corporations, while the global services division provides communications consultancy services.
67GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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