Ribbon CommunicationsRBBN +0.23%56 Gross Margin % is 42.86% as of Mar. 2026, which is 19% below its 10-year median of 53.07. GuruFocus rates RBBN with a GF Score™ of 56/100 and a GF Value™ of $2.98 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,680 Software companies, Ribbon Communications ranks better than 60.37% 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
Ribbon Communications had a gross margin of 42.86% 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.
Ribbon Communications Gross Margin % Related Terms
Ribbon Communications Gross Margin % Historical Data
* Premium members only.
The historical data trend for Ribbon Communications'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.
RBBN vs XPER, SVCO, RMNI: Gross Margin % Comparison
For the Software - Application subindustry, Ribbon Communications'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.
Ribbon Communications Gross Margin % vs Software Industry
For the Software industry and Technology sector, Ribbon Communications's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ribbon Communications'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.
Ribbon Communications (RBBN) has a Gross Margin % of 42.86% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ribbon Communications and its competitors. This is 19% below median its historical median of 53.07. Over the past decade, Ribbon Communications' Gross Margin % has ranged from 48.91 to 66.36. According to the industry distribution chart, Ribbon Communications ranks #1062 out of 2680 companies in the Software industry, placing it in the top 39.6%.
Is Ribbon Communications' Gross Margin % too high?
Ribbon Communications' current Gross Margin % of 42.86% is 19% below median its 10-year median of 53.07. Over the past 10 years, this metric has ranged from a low of 48.91 to a high of 66.36. The Software industry median Gross Margin % is 40.45. Ribbon Communications' value of 42.86% is 6% above this industry median. Based on the distribution chart, Ribbon Communications ranks #1062 out of 2680 companies in the Software industry, which is above the industry midpoint. Overall, Ribbon Communications has a GF Score™ of 56/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ribbon Communications' Gross Margin % compare to XPER and SVCO?
According to the Software industry distribution chart, Ribbon Communications ranks #1062 out of 2680 companies for Gross Margin %. This puts Ribbon Communications in the upper half of its industry. The industry median Gross Margin % is 40.45. Ribbon Communications' value of 42.86% is 6% above this benchmark. Historically, Ribbon Communications' own Gross Margin % has ranged from 48.91 to 66.36 over the past decade. While the company's 10-year median is 53.07 vs. the industry median of 40.45, Ribbon Communications 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 40.45, based on 2,680 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. Ribbon Communications's current Gross Margin % of 42.86% is 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 Ribbon Communications and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ribbon Communications's current Gross Margin % is 42.86%, which is 19% below median its own 10-year median of 53.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ribbon Communications stock overvalued right now?
Based on GuruFocus' analysis, Ribbon Communications (RBBN) is currently considered Modestly Undervalued. The stock's GF Value™ is $2.98, compared to a current price of $2.23 — trading 25.3% below its estimated fair value. The current Gross Margin % is 42.86%, which is 19% below median its 10-year median of 53.07 and 6% above the Software industry median of 40.45. Ribbon Communications' overall GF Score™ is 56/100 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 Ribbon Communications (RBBN), the current Gross Margin % is 42.86% 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 Ribbon Communications (RBBN) Overvalued in 2026?
Based on GuruFocus' analysis, Ribbon Communications stock appears to be undervalued.
The current stock price of $2.23 is trading 25.3% below its estimated GF Value™ of $2.98.
GuruFocus considers Ribbon Communications to be Modestly Undervalued.
Key valuation signals for RBBN:
Gross Margin %: 42.86% (19% below median its 10-year median of 53.07)
GF Value™: $2.98 vs. price of $2.23 (25.3% below fair value)
Industry Position: 6% above the Software median (#1062 of 2680)
No single metric tells the full story. See the RBBN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ribbon Communications Inc provides communications technology to service providers and enterprises, offering software and high-performance hardware products, network solutions, and services for secure data and voice communications, as well as high-bandwidth networking for residential and enterprise customers across industries such as finance, education, government, utilities, and transportation. It operates through two segments: Cloud and Edge, which generate maximum revenue and deliver software-centric, cloud-native solutions for VoIP, VoLTE, VoNR, and unified communications, and IP Optical Networks, which support growing telecommunications traffic from 5G, distributed cloud computing, and other applications. The Company generates the majority of its revenue from the United States.
56GF Score
Get the complete analysis for RBBN
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
RBBN has been successfully added to your 
