Swisscom AGSTU:SWJ -0.14%76 Gross Margin % is 82.25% as of Mar. 2026, which is 2% above its 10-year median of 80.41. GuruFocus rates STU:SWJ with a GF Score™ of 76/100 and a GF Value™ of €747.74 (Fairly Valued). The stock has 6 warning signs investors should review. Among 344 Telecommunication Services companies, Swisscom AG ranks better than 90.41% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Swisscom AG's Gross Profit for the
three
months ended in Mar. 2026 was €3,259 Mil. Swisscom AG's Revenue for the
three
months ended in Mar. 2026 was €3,962 Mil. Therefore, Swisscom AG's Gross Margin % for the quarter that ended in Mar. 2026 was 82.25%.
The historical rank and industry rank for Swisscom AG's Gross Margin % or its related term are showing as below:
STU:SWJ'
s Gross Margin % Range Over the Past 10 Years
Min: 78.72 Med: 80.41 Max: 83.42
Current: 80.53
During the past 13 years, the highestGross Margin % of Swisscom AG was 83.42%. The lowest was 78.72%. And the median was 80.41%.
STU:SWJ's Gross Margin % is ranked better than 90.41% of 344
companies
in the Telecommunication Services industry
Industry Median: 51.415
vs STU:SWJ: 80.53
Swisscom AG had a gross margin of 82.25% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Swisscom AG was 0.20% per year.
Swisscom AG (STU:SWJ) 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
Swisscom AG had a gross margin of 82.25% 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.
Swisscom AG Gross Margin % Related Terms
Swisscom AG Gross Margin % Historical Data
* Premium members only.
The historical data trend for Swisscom AG'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, Swisscom AG'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.
Swisscom AG Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Swisscom AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Swisscom AG'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.
Swisscom AG (STU:SWJ) has a Gross Margin % of 82.25% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Swisscom AG and its competitors. This is near median its historical median of 80.41. Over the past decade, Swisscom AG's Gross Margin % has ranged from 78.72 to 83.42. According to the industry distribution chart, Swisscom AG ranks #33 out of 344 companies in the Telecommunication Services industry, placing it in the top 9.6%.
Is Swisscom AG's Gross Margin % too high?
Swisscom AG's current Gross Margin % of 82.25% is near median its 10-year median of 80.41. Over the past 10 years, this metric has ranged from a low of 78.72 to a high of 83.42. The Telecommunication Services industry median Gross Margin % is 51.42. Swisscom AG's value of 82.25% is 60% above this industry median. Based on the distribution chart, Swisscom AG ranks #33 out of 344 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Swisscom AG has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Swisscom AG's Gross Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Swisscom AG ranks #33 out of 344 companies for Gross Margin %. This places Swisscom AG in the top 10% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 51.42. Swisscom AG's value of 82.25% is 60% above this benchmark. Historically, Swisscom AG's own Gross Margin % has ranged from 78.72 to 83.42 over the past decade. While the company's 10-year median is 80.41 vs. the industry median of 51.42, Swisscom AG 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. Swisscom AG's current Gross Margin % of 82.25% is 60% 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 Swisscom AG 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. Swisscom AG's current Gross Margin % is 82.25%, which is near median its own 10-year median of 80.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Swisscom AG stock overvalued right now?
Based on GuruFocus' analysis, Swisscom AG (STU:SWJ) is currently considered Fairly Valued. The stock's GF Value™ is €747.74, compared to a current price of €691.00 — trading 7.6% below its estimated fair value. The current Gross Margin % is 82.25%, which is near median its 10-year median of 80.41 and 60% above the Telecommunication Services industry median of 51.42. Swisscom AG's overall GF Score™ is 76/100 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 Swisscom AG (STU:SWJ), the current Gross Margin % is 82.25% 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 Swisscom AG (STU:SWJ) Overvalued in 2026?
Based on GuruFocus' analysis, Swisscom AG stock appears to be undervalued.
The current stock price of €691.00 is trading 7.6% below its estimated GF Value™ of €747.74.
GuruFocus considers Swisscom AG to be Fairly Valued.
Key valuation signals for STU:SWJ:
Gross Margin %: 82.25% (near median its 10-year median of 80.41)
GF Value™: €747.74 vs. price of €691.00 (7.6% below fair value)
Industry Position: 60% above the Telecommunication Services median (#33 of 344)
No single metric tells the full story. See the STU:SWJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Swisscom is the incumbent telecom operator in Switzerland, with a very high market share in mobile and fixed-line markets. It charges high prices compared with its competitors and other European peers due to the historical stability of the Swiss telecom market and a favorable regulatory environment. In 2024, Swisscom acquired Vodafone Italia in a deal worth EUR 8 billion.
76GF Score
Get the complete analysis for STU:SWJ
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
STU:SWJ has been successfully added to your 
