Ingersoll RandIR +2.19%86 Gross Margin % is 42.90% as of Mar. 2026, which is 11% above its 10-year median of 38.59. GuruFocus rates IR with a GF Score™ of 86/100 and a GF Value™ of $91.25 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 3,003 Industrial Products companies, Ingersoll Rand ranks better than 82.55% 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
Ingersoll Rand had a gross margin of 42.90% 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.
Ingersoll Rand Gross Margin % Related Terms
Ingersoll Rand Gross Margin % Historical Data
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The historical data trend for Ingersoll Rand'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 Specialty Industrial Machinery subindustry, Ingersoll Rand'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.
Ingersoll Rand Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Ingersoll Rand's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ingersoll Rand'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.
Ingersoll Rand (IR) has a Gross Margin % of 42.90% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ingersoll Rand and its competitors. This is 11% above median its historical median of 38.59. Over the past decade, Ingersoll Rand's Gross Margin % has ranged from 35.36 to 43.81. According to the industry distribution chart, Ingersoll Rand ranks #524 out of 3003 companies in the Industrial Products industry, placing it in the top 17.4%.
Is Ingersoll Rand's Gross Margin % too high?
Ingersoll Rand's current Gross Margin % of 42.90% is 11% above median its 10-year median of 38.59. Over the past 10 years, this metric has ranged from a low of 35.36 to a high of 43.81. The Industrial Products industry median Gross Margin % is 26.79. Ingersoll Rand's value of 42.90% is 60.1% above this industry median. Based on the distribution chart, Ingersoll Rand ranks #524 out of 3003 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Ingersoll Rand has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ingersoll Rand's Gross Margin % compare to DOV and OTIS?
According to the Industrial Products industry distribution chart, Ingersoll Rand ranks #524 out of 3003 companies for Gross Margin %. This places Ingersoll Rand in the top 17% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.79. Ingersoll Rand's value of 42.90% is 60.1% above this benchmark. Historically, Ingersoll Rand's own Gross Margin % has ranged from 35.36 to 43.81 over the past decade. While the company's 10-year median is 38.59 vs. the industry median of 26.79, Ingersoll Rand 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.79, based on 3,003 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. Ingersoll Rand's current Gross Margin % of 42.90% is 60.1% 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 Ingersoll Rand and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ingersoll Rand's current Gross Margin % is 42.90%, which is 11% above median its own 10-year median of 38.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ingersoll Rand stock overvalued right now?
Based on GuruFocus' analysis, Ingersoll Rand (IR) is currently considered Modestly Undervalued. The stock's GF Value™ is $91.25, compared to a current price of $78.32 — trading 14.2% below its estimated fair value. The current Gross Margin % is 42.90%, which is 11% above median its 10-year median of 38.59 and 60.1% above the Industrial Products industry median of 26.79. Ingersoll Rand's overall GF Score™ is 86/100 with 2 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 Ingersoll Rand (IR), the current Gross Margin % is 42.90% 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 Ingersoll Rand (IR) Overvalued in 2026?
Based on GuruFocus' analysis, Ingersoll Rand stock appears to be undervalued.
The current stock price of $78.32 is trading 14.2% below its estimated GF Value™ of $91.25.
GuruFocus considers Ingersoll Rand to be Modestly Undervalued.
Key valuation signals for IR:
Gross Margin %: 42.90% (11% above median its 10-year median of 38.59)
GF Value™: $91.25 vs. price of $78.32 (14.2% below fair value)
Industry Position: 60.1% above the Industrial Products median (#524 of 3003)
No single metric tells the full story. See the IR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ingersoll Rand was formed through the merger of Gardner Denver and Ingersoll Rand's industrial segment. The firm's portfolio consists of two business lines: industrial technologies and services, and precision and science technologies. Ingersoll Rand serves a variety of end markets, including industrial, medical, and energy. Its broad portfolio of products includes compression, blower and vacuum, and fluid management. Ingersoll Rand generated roughly $7.7 billion in revenue in 2025.
86GF Score
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