Grid Dynamics HoldingsGDYN -2.48%71 Gross Margin % is 34.80% as of Mar. 2026, which is 10% below its 10-year median of 38.84. GuruFocus rates GDYN with a GF Score™ of 71/100 and a GF Value™ of $13.00 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,681 Software companies, Grid Dynamics Holdings ranks worse than 58% 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
Grid Dynamics Holdings had a gross margin of 34.80% for the quarter that ended in Mar. 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.
Grid Dynamics Holdings Gross Margin % Related Terms
Grid Dynamics Holdings Gross Margin % Historical Data
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The historical data trend for Grid Dynamics 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.
GDYN vs TASK, IBEX, FCCN: Gross Margin % Comparison
For the Information Technology Services subindustry, Grid Dynamics 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.
Grid Dynamics Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, Grid Dynamics Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Grid Dynamics 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.
Grid Dynamics Holdings (GDYN) has a Gross Margin % of 34.80% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Grid Dynamics Holdings and its competitors. This is 10% below median its historical median of 38.84. Over the past decade, Grid Dynamics Holdings' Gross Margin % has ranged from 34.07 to 42.79. According to the industry distribution chart, Grid Dynamics Holdings ranks #1555 out of 2681 companies in the Software industry, placing it in the top 58%.
Is Grid Dynamics Holdings' Gross Margin % too high?
Grid Dynamics Holdings' current Gross Margin % of 34.80% is 10% below median its 10-year median of 38.84. Over the past 10 years, this metric has ranged from a low of 34.07 to a high of 42.79. The Software industry median Gross Margin % is 40.41. Grid Dynamics Holdings' value of 34.80% is 13.9% below this industry median. Based on the distribution chart, Grid Dynamics Holdings ranks #1555 out of 2681 companies in the Software industry, which is below the industry midpoint. Overall, Grid Dynamics Holdings has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Grid Dynamics Holdings' Gross Margin % compare to TASK and IBEX?
According to the Software industry distribution chart, Grid Dynamics Holdings ranks #1555 out of 2681 companies for Gross Margin %. This places Grid Dynamics Holdings in the lower half of its industry. The industry median Gross Margin % is 40.41. Grid Dynamics Holdings' value of 34.80% is 13.9% below this benchmark. Historically, Grid Dynamics Holdings' own Gross Margin % has ranged from 34.07 to 42.79 over the past decade. While the company's 10-year median is 38.84 vs. the industry median of 40.41, Grid Dynamics Holdings 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 40.41, based on 2,681 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. Grid Dynamics Holdings's current Gross Margin % of 34.80% is 13.9% 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 Grid Dynamics Holdings and its competitors. For the Software industry, the median Gross Margin % is 40.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grid Dynamics Holdings's current Gross Margin % is 34.80%, which is 10% below median its own 10-year median of 38.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grid Dynamics Holdings stock overvalued right now?
Based on GuruFocus' analysis, Grid Dynamics Holdings (GDYN) is currently considered Significantly Undervalued. The stock's GF Value™ is $13.00, compared to a current price of $6.09 — trading 53.2% below its estimated fair value. The current Gross Margin % is 34.80%, which is 10% below median its 10-year median of 38.84 and 13.9% below the Software industry median of 40.41. Grid Dynamics 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 Grid Dynamics Holdings (GDYN), the current Gross Margin % is 34.80% 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 Grid Dynamics Holdings (GDYN) Overvalued in 2026?
Based on GuruFocus' analysis, Grid Dynamics Holdings stock appears to be undervalued.
The current stock price of $6.09 is trading 53.2% below its estimated GF Value™ of $13.00.
GuruFocus considers Grid Dynamics Holdings to be Significantly Undervalued.
Key valuation signals for GDYN:
Gross Margin %: 34.80% (10% below median its 10-year median of 38.84)
GF Value™: $13.00 vs. price of $6.09 (53.2% below fair value)
Industry Position: 13.9% below the Software median (#1555 of 2681)
No single metric tells the full story. See the GDYN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Grid Dynamics Holdings Inc is a provider of technology consulting, platform and product engineering, and advanced analytics services. The company delivers tailored solutions in several industry verticals like Tech, Media and Telecom, Retail, Finance and Consumer Packaged goods (CPG)/manufacturing. The company derives maximum revenue from Retails. Geographically company earns revenue from North America, Europe and other regions.
71GF Score
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