Xanadu Quantum TechnologiesTSX:XNDU +1.76%11 Gross Margin % is 96.01% as of Mar. 2026, which is 27% above its 10-year median of 75.59. GuruFocus rates TSX:XNDU with a GF Score™ of 11/100. The stock has 1 warning sign investors should review. Among 2,678 Software companies, Xanadu Quantum Technologies ranks better than 97.24% 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
Xanadu Quantum Technologies had a gross margin of 96.01% 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.
Xanadu Quantum Technologies Gross Margin % Related Terms
Xanadu Quantum Technologies 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.
TSX:XNDU vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Xanadu Quantum Technologies'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.
Xanadu Quantum Technologies Gross Margin % vs Software Industry
For the Software industry and Technology sector, Xanadu Quantum Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Xanadu Quantum Technologies'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.
Xanadu Quantum Technologies (TSX:XNDU) has a Gross Margin % of 96.01% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Xanadu Quantum Technologies and its competitors. This is 27% above median its historical median of 75.59. Over the past decade, Xanadu Quantum Technologies' Gross Margin % has ranged from 70.67 to 93.61. According to the industry distribution chart, Xanadu Quantum Technologies ranks #74 out of 2678 companies in the Software industry, placing it in the top 2.8%.
Is Xanadu Quantum Technologies' Gross Margin % too high?
Xanadu Quantum Technologies' current Gross Margin % of 96.01% is 27% above median its 10-year median of 75.59. Over the past 10 years, this metric has ranged from a low of 70.67 to a high of 93.61. The Software industry median Gross Margin % is 40.46. Xanadu Quantum Technologies' value of 96.01% is 137.3% above this industry median. Based on the distribution chart, Xanadu Quantum Technologies ranks #74 out of 2678 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Xanadu Quantum Technologies has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Xanadu Quantum Technologies' Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Xanadu Quantum Technologies ranks #74 out of 2678 companies for Gross Margin %. This places Xanadu Quantum Technologies in the top 3% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.46. Xanadu Quantum Technologies' value of 96.01% is 137.3% above this benchmark. Historically, Xanadu Quantum Technologies' own Gross Margin % has ranged from 70.67 to 93.61 over the past decade. While the company's 10-year median is 75.59 vs. the industry median of 40.46, Xanadu Quantum Technologies 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 40.46, based on 2,678 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. Xanadu Quantum Technologies's current Gross Margin % of 96.01% is 137.3% 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 Xanadu Quantum Technologies and its competitors. For the Software industry, the median Gross Margin % is 40.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xanadu Quantum Technologies's current Gross Margin % is 96.01%, which is 27% above median its own 10-year median of 75.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xanadu Quantum Technologies stock overvalued right now?
Xanadu Quantum Technologies (TSX:XNDU) has a current Gross Margin % of 96.01%. The current Gross Margin % is 96.01%, which is 27% above median its 10-year median of 75.59 and 137.3% above the Software industry median of 40.46. Xanadu Quantum Technologies' overall GF Score™ is 11/100 with 1 warning sign 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 Xanadu Quantum Technologies (TSX:XNDU), the current Gross Margin % is 96.01% 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.
Xanadu Quantum Technologies Ltd specializes in designing photonic devices and the platforms around them, including the experimentation and development of quantum computers available on the cloud with supporting software, along with quantum simulators and other related products and offerings. Its products include: Aurora, PennyLane, Catalyst, Lightning, Catalyst and PennyLane Codebook. The company operates in industries such as automotive, aerospace, energy, materials, and semiconductor sectors.
11GF Score
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