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Shift4 PaymentsFOURPA.PFD +7.11%75 Gross Margin % is 34.44% as of Jun. 2026, which is 41% above its 10-year median of 24.41. GuruFocus rates FOURPA.PFD with a GF Score™ of 75/100. The stock has 7 warning signs investors should review. Among 2,689 Software companies, Shift4 Payments ranks worse than 55.78% on this metric.
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
Shift4 Payments had a gross margin of 34.44% for the quarter that ended in Jun. 2026 => Competition eroding margins
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.
Shift4 Payments Gross Margin % Related Terms
Shift4 Payments Gross Margin % Historical Data
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The historical data trend for Shift4 Payments'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.
FOURPA.PFD vs BOX, BLSH, PAY: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Shift4 Payments'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.
Shift4 Payments Gross Margin % vs Software Industry
For the Software industry and Technology sector, Shift4 Payments's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shift4 Payments'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.
Shift4 Payments (FOURPA.PFD) has a Gross Margin % of 34.44% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shift4 Payments and its competitors. This is 41% above median its historical median of 24.41. Over the past decade, Shift4 Payments' Gross Margin % has ranged from 20.36 to 35.90. According to the industry distribution chart, Shift4 Payments ranks #1500 out of 2689 companies in the Software industry, placing it in the top 55.8%.
Is Shift4 Payments' Gross Margin % too high?
Shift4 Payments' current Gross Margin % of 34.44% is 41% above median its 10-year median of 24.41. Over the past 10 years, this metric has ranged from a low of 20.36 to a high of 35.90. The Software industry median Gross Margin % is 40.67. Shift4 Payments' value of 34.44% is 15.3% below this industry median. Based on the distribution chart, Shift4 Payments ranks #1500 out of 2689 companies in the Software industry, which is below the industry midpoint. Overall, Shift4 Payments has a GF Score™ of 75/100, reflecting its overall financial health beyond just this single metric.
How does Shift4 Payments' Gross Margin % compare to BOX and BLSH?
According to the Software industry distribution chart, Shift4 Payments ranks #1500 out of 2689 companies for Gross Margin %. This places Shift4 Payments in the lower half of its industry. The industry median Gross Margin % is 40.67. Shift4 Payments' value of 34.44% is 15.3% below this benchmark. Historically, Shift4 Payments' own Gross Margin % has ranged from 20.36 to 35.90 over the past decade. While the company's 10-year median is 24.41 vs. the industry median of 40.67, Shift4 Payments has consistently been below 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 40.67, based on 2,689 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. Shift4 Payments's current Gross Margin % of 34.44% is 15.3% below 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 Shift4 Payments and its competitors. For the Software industry, the median Gross Margin % is 40.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shift4 Payments's current Gross Margin % is 34.44%, which is 41% above median its own 10-year median of 24.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shift4 Payments stock overvalued right now?
Shift4 Payments (FOURPA.PFD) has a current Gross Margin % of 34.44%. The current Gross Margin % is 34.44%, which is 41% above median its 10-year median of 24.41 and 15.3% below the Software industry median of 40.67. Shift4 Payments' overall GF Score™ is 75/100 with 7 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 Shift4 Payments (FOURPA.PFD), the current Gross Margin % is 34.44% 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.
Shift4 Payments Inc is an independent provider of software and payment processing solutions in the U.S., expanding internationally. Its payments platform offers integrated products and services across in-store, online, mobile and tablet-based channels, including end-to-end payment processing, merchant acquiring services, a proprietary omni-channel gateway, eCommerce capabilities, and reporting tools. The company distributes its services through internal sales teams and partners, including independent software vendors (ISVs) and value-added resellers (VARs). Revenue is predominantly recurring, derived mainly from processing fees and subscription revenue from POS software, business intelligence tools and other technology solutions. The company derives maximum revenue from the United States.
75GF Score
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