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PayPayPAYP -2.11%16 Gross Margin % is 84.97% as of Mar. 2026, which is 0% below its 10-year median of 85.29. GuruFocus rates PAYP with a GF Score™ of 16/100. The stock has 5 warning signs investors should review. Among 2,689 Software companies, PayPay ranks better than 93.42% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. PayPay's Gross Profit for the
three
months ended in Mar. 2026 was $528 Mil. PayPay's Revenue for the
three
months ended in Mar. 2026 was $622 Mil. Therefore, PayPay's Gross Margin % for the quarter that ended in Mar. 2026 was 84.97%.
The historical rank and industry rank for PayPay's Gross Margin % or its related term are showing as below:
PAYP'
s Gross Margin % Range Over the Past 10 Years
Min: 84.55 Med: 85.29 Max: 87.05
Current: 87.05
During the past 4 years, the highestGross Margin % of PayPay was 87.05%. The lowest was 84.55%. And the median was 85.29%.
PAYP's Gross Margin % is ranked better than 93.42% of 2689
companies
in the Software industry
Industry Median: 40.54
vs PAYP: 87.05
PayPay had a gross margin of 84.97% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for PayPay was 0.00% per year.
PayPay (NAS:PAYP) 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
PayPay had a gross margin of 84.97% 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.
PayPay Gross Margin % Related Terms
PayPay Gross Margin % Historical Data
* Premium members only.
The historical data trend for PayPay'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.
PAYP vs GDDY, SAIL, CHKP: Gross Margin % Comparison
For the Software - Infrastructure subindustry, PayPay'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.
PayPay Gross Margin % vs Software Industry
For the Software industry and Technology sector, PayPay's Gross Margin % distribution charts can be found below:
* The bar in red indicates where PayPay'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.
PayPay (PAYP) has a Gross Margin % of 84.97% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on PayPay and its competitors. This is near median its historical median of 85.29. Over the past decade, PayPay's Gross Margin % has ranged from 84.55 to 87.05. According to the industry distribution chart, PayPay ranks #177 out of 2689 companies in the Software industry, placing it in the top 6.6%.
Is PayPay's Gross Margin % too high?
PayPay's current Gross Margin % of 84.97% is near median its 10-year median of 85.29. Over the past 10 years, this metric has ranged from a low of 84.55 to a high of 87.05. The Software industry median Gross Margin % is 40.54. PayPay's value of 84.97% is 109.6% above this industry median. Based on the distribution chart, PayPay ranks #177 out of 2689 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, PayPay has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does PayPay's Gross Margin % compare to GDDY and SAIL?
According to the Software industry distribution chart, PayPay ranks #177 out of 2689 companies for Gross Margin %. This places PayPay in the top 7% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.54. PayPay's value of 84.97% is 109.6% above this benchmark. Historically, PayPay's own Gross Margin % has ranged from 84.55 to 87.05 over the past decade. While the company's 10-year median is 85.29 vs. the industry median of 40.54, PayPay 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 Software company?
The median Gross Margin % among Software companies is 40.54, 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. PayPay's current Gross Margin % of 84.97% is 109.6% 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 PayPay and its competitors. For the Software industry, the median Gross Margin % is 40.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PayPay's current Gross Margin % is 84.97%, which is near median its own 10-year median of 85.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PayPay stock overvalued right now?
PayPay (PAYP) has a current Gross Margin % of 84.97%. The current Gross Margin % is 84.97%, which is near median its 10-year median of 85.29 and 109.6% above the Software industry median of 40.54. PayPay's overall GF Score™ is 16/100 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 PayPay (PAYP), the current Gross Margin % is 84.97% 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.
PayPay is a fintech company jointly owned by Softbank and LY. It was founded in 2018, following the success of Alipay and WeChat Pay in China, and was the pioneering code payment app in Japan. Over the past seven years, it has amassed more than 70 million users and is the market leader in code payments.
16GF Score
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