NTTNTTYY +0.31%80 Gross Margin % is 206.12% as of Mar. 2026, which is 161% above its 10-year median of 78.91. GuruFocus rates NTTYY with a GF Score™ of 80/100 and a GF Value™ of $27.04 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 344 Telecommunication Services companies, NTT ranks better than 88.66% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. NTT's Gross Profit for the
three
months ended in Mar. 2026 was $51,802 Mil. NTT's Revenue for the
three
months ended in Mar. 2026 was $25,132 Mil. Therefore, NTT's Gross Margin % for the quarter that ended in Mar. 2026 was 206.12%.
The historical rank and industry rank for NTT's Gross Margin % or its related term are showing as below:
NTTYY'
s Gross Margin % Range Over the Past 10 Years
Min: 51.47 Med: 78.91 Max: 79.87
Current: 77.69
During the past 13 years, the highestGross Margin % of NTT was 79.87%. The lowest was 51.47%. And the median was 78.91%.
NTTYY's Gross Margin % is ranked better than 88.66% of 344
companies
in the Telecommunication Services industry
Industry Median: 51.415
vs NTTYY: 77.69
NTT had a gross margin of 206.12% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for NTT was -0.50% per year.
NTT (OTCPK:NTTYY) 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
NTT had a gross margin of 206.12% 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.
NTT Gross Margin % Related Terms
NTT Gross Margin % Historical Data
* Premium members only.
The historical data trend for NTT'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 Telecom Services subindustry, NTT'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.
NTT Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, NTT's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NTT'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.
NTT (NTTYY) has a Gross Margin % of 206.12% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on NTT and its competitors. This is 161% above median its historical median of 78.91. Over the past decade, NTT's Gross Margin % has ranged from 51.47 to 79.87. According to the industry distribution chart, NTT ranks #39 out of 344 companies in the Telecommunication Services industry, placing it in the top 11.3%.
Is NTT's Gross Margin % too high?
NTT's current Gross Margin % of 206.12% is 161% above median its 10-year median of 78.91. Over the past 10 years, this metric has ranged from a low of 51.47 to a high of 79.87. The Telecommunication Services industry median Gross Margin % is 51.42. NTT's value of 206.12% is 300.9% above this industry median. Based on the distribution chart, NTT ranks #39 out of 344 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, NTT has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NTT's Gross Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, NTT ranks #39 out of 344 companies for Gross Margin %. This places NTT in the top 11% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 51.42. NTT's value of 206.12% is 300.9% above this benchmark. Historically, NTT's own Gross Margin % has ranged from 51.47 to 79.87 over the past decade. While the company's 10-year median is 78.91 vs. the industry median of 51.42, NTT 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. NTT's current Gross Margin % of 206.12% is 300.9% 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 NTT 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. NTT's current Gross Margin % is 206.12%, which is 161% above median its own 10-year median of 78.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NTT stock overvalued right now?
Based on GuruFocus' analysis, NTT (NTTYY) is currently considered Modestly Undervalued. The stock's GF Value™ is $27.04, compared to a current price of $22.30 — trading 17.5% below its estimated fair value. The current Gross Margin % is 206.12%, which is 161% above median its 10-year median of 78.91 and 300.9% above the Telecommunication Services industry median of 51.42. NTT's overall GF Score™ is 80/100 with 5 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 NTT (NTTYY), the current Gross Margin % is 206.12% 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 NTT (NTTYY) Overvalued in 2026?
Based on GuruFocus' analysis, NTT stock appears to be undervalued.
The current stock price of $22.30 is trading 17.5% below its estimated GF Value™ of $27.04.
GuruFocus considers NTT to be Modestly Undervalued.
Key valuation signals for NTTYY:
Gross Margin %: 206.12% (161% above median its 10-year median of 78.91)
GF Value™: $27.04 vs. price of $22.30 (17.5% below fair value)
Industry Position: 300.9% above the Telecommunication Services median (#39 of 344)
No single metric tells the full story. See the NTTYY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NTT owns NTT DoCoMo, the largest wireless operator in Japan, with 53 million mobile handset subscribers. It also owns NTT East and NTT West, the two regional incumbent fixed-line operators in Japan, with about 23.6 million broadband lines (around 72% of which are wholesaled). The firm also provides IT and communications systems integration via NTT Communications and NTT Data.
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