Sphere Entertainment CoSPHR +5.27%58 Gross Margin % is 56.10% as of Mar. 2026, which is 25% above its 10-year median of 44.95. GuruFocus rates SPHR with a GF Score™ of 58/100 and a GF Value™ of $66.63 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 953 Media - Diversified companies, Sphere Entertainment Co ranks better than 70.09% on this metric.
SPHR's Gross Margin % is ranked better than 70.09% of 953
companies
in the Media - Diversified industry
Industry Median: 38.9
vs SPHR: 54.65
Sphere Entertainment Co had a gross margin of 56.10% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sphere Entertainment Co was -0.60% per year.
Sphere Entertainment Co (NYSE:SPHR) 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
Sphere Entertainment Co had a gross margin of 56.10% 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.
Sphere Entertainment Co Gross Margin % Related Terms
Sphere Entertainment Co Gross Margin % Historical Data
* 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.
SPHR vs LION, VSNT, MANU: Gross Margin % Comparison
For the Entertainment subindustry, Sphere Entertainment Co'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.
Sphere Entertainment Co Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Sphere Entertainment Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sphere Entertainment Co'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.
Sphere Entertainment Co (SPHR) has a Gross Margin % of 56.10% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sphere Entertainment Co and its competitors. This is 25% above median its historical median of 44.95. Over the past decade, Sphere Entertainment Co's Gross Margin % has ranged from 27.28 to 59.40. According to the industry distribution chart, Sphere Entertainment Co ranks #285 out of 953 companies in the Media - Diversified industry, placing it in the top 29.9%.
Is Sphere Entertainment Co's Gross Margin % too high?
Sphere Entertainment Co's current Gross Margin % of 56.10% is 25% above median its 10-year median of 44.95. Over the past 10 years, this metric has ranged from a low of 27.28 to a high of 59.40. The Media - Diversified industry median Gross Margin % is 38.90. Sphere Entertainment Co's value of 56.10% is 44.2% above this industry median. Based on the distribution chart, Sphere Entertainment Co ranks #285 out of 953 companies in the Media - Diversified industry, which is above the industry midpoint. Overall, Sphere Entertainment Co has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sphere Entertainment Co's Gross Margin % compare to LION and VSNT?
According to the Media - Diversified industry distribution chart, Sphere Entertainment Co ranks #285 out of 953 companies for Gross Margin %. This puts Sphere Entertainment Co in the upper half of its industry. The industry median Gross Margin % is 38.90. Sphere Entertainment Co's value of 56.10% is 44.2% above this benchmark. Historically, Sphere Entertainment Co's own Gross Margin % has ranged from 27.28 to 59.40 over the past decade. While the company's 10-year median is 44.95 vs. the industry median of 38.90, Sphere Entertainment Co 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 Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.90, based on 953 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. Sphere Entertainment Co's current Gross Margin % of 56.10% is 44.2% 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 Sphere Entertainment Co and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sphere Entertainment Co's current Gross Margin % is 56.10%, which is 25% above median its own 10-year median of 44.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sphere Entertainment Co stock overvalued right now?
Based on GuruFocus' analysis, Sphere Entertainment Co (SPHR) is currently considered Significantly Overvalued. The stock's GF Value™ is $66.63, compared to a current price of $169.85 — trading 154.9% above its estimated fair value. The current Gross Margin % is 56.10%, which is 25% above median its 10-year median of 44.95 and 44.2% above the Media - Diversified industry median of 38.90. Sphere Entertainment Co's overall GF Score™ is 58/100 with 6 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 Sphere Entertainment Co (SPHR), the current Gross Margin % is 56.10% 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 Sphere Entertainment Co (SPHR) Overvalued in 2026?
Based on GuruFocus' analysis, Sphere Entertainment Co stock appears to be overvalued.
The current stock price of $169.85 is trading 154.9% above its estimated GF Value™ of $66.63.
GuruFocus considers Sphere Entertainment Co to be Significantly Overvalued.
Key valuation signals for SPHR:
Gross Margin %: 56.10% (25% above median its 10-year median of 44.95)
GF Value™: $66.63 vs. price of $169.85 (154.9% above fair value)
Industry Position: 44.2% above the Media - Diversified median (#285 of 953)
No single metric tells the full story. See the SPHR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sphere Entertainment Co is a live entertainment and media company. The firm creates, writes, casts, produces, and tours shows and events. The group has two reportable segments: Sphere and MSG Networks. Sphere is a next-generation entertainment medium, and MSG Networks operates two regional sports and entertainment networks, as well as a direct-to-consumer (DTC) and authenticated streaming product.
58GF Score
Get the complete analysis for SPHR
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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