Verizon CommunicationsVZA.PFD 64 Gross Margin % is 60.30% as of Mar. 2026, which is 3% above its 10-year median of 58.34. GuruFocus rates VZA.PFD with a GF Score™ of 64/100. The stock has 6 warning signs investors should review. Among 344 Telecommunication Services companies, Verizon Communications ranks better than 61.92% on this metric.
VZA.PFD's Gross Margin % is ranked better than 61.92% of 344
companies
in the Telecommunication Services industry
Industry Median: 51.415
vs VZA.PFD: 58.76
Verizon Communications had a gross margin of 60.30% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Verizon Communications was 0.10% per year.
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
Verizon Communications had a gross margin of 60.30% 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.
Verizon Communications Gross Margin % Related Terms
Verizon Communications Gross Margin % Historical Data
* Premium members only.
The historical data trend for Verizon 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.
VZA.PFD vs TMUS, T, CMCSA: Gross Margin % Comparison
For the Telecom Services subindustry, Verizon 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.
Verizon Communications Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Verizon Communications's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Verizon 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.
Verizon Communications (VZA.PFD) has a Gross Margin % of 60.30% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Verizon Communications and its competitors. This is near median its historical median of 58.34. Over the past decade, Verizon Communications' Gross Margin % has ranged from 56.79 to 60.09. According to the industry distribution chart, Verizon Communications ranks #131 out of 344 companies in the Telecommunication Services industry, placing it in the top 38.1%.
Is Verizon Communications' Gross Margin % too high?
Verizon Communications' current Gross Margin % of 60.30% is near median its 10-year median of 58.34. Over the past 10 years, this metric has ranged from a low of 56.79 to a high of 60.09. The Telecommunication Services industry median Gross Margin % is 51.42. Verizon Communications' value of 60.30% is 17.3% above this industry median. Based on the distribution chart, Verizon Communications ranks #131 out of 344 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Verizon Communications has a GF Score™ of 64/100, reflecting its overall financial health beyond just this single metric.
How does Verizon Communications' Gross Margin % compare to TMUS and T?
According to the Telecommunication Services industry distribution chart, Verizon Communications ranks #131 out of 344 companies for Gross Margin %. This puts Verizon Communications in the upper half of its industry. The industry median Gross Margin % is 51.42. Verizon Communications' value of 60.30% is 17.3% above this benchmark. Historically, Verizon Communications' own Gross Margin % has ranged from 56.79 to 60.09 over the past decade. While the company's 10-year median is 58.34 vs. the industry median of 51.42, Verizon 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 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. Verizon Communications's current Gross Margin % of 60.30% is 17.3% 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 Verizon Communications 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. Verizon Communications's current Gross Margin % is 60.30%, which is near median its own 10-year median of 58.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Verizon Communications stock overvalued right now?
Verizon Communications (VZA.PFD) has a current Gross Margin % of 60.30%. The current Gross Margin % is 60.30%, which is near median its 10-year median of 58.34 and 17.3% above the Telecommunication Services industry median of 51.42. Verizon Communications' overall GF Score™ is 64/100 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 Verizon Communications (VZA.PFD), the current Gross Margin % is 60.30% 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.
Wireless services account for 75% of Verizon Communications' total service revenue and nearly all of its operating income. The firm serves about 94 million postpaid and 20 million prepaid phone customers via its nationwide network, making it the largest US wireless carrier. Fixed-line telecom operations include local networks in the Northeast that reach about 30 million homes and businesses, including about 20 million served by the Fios fiber-optic network. Verizon closed its acquisition of Frontier Communications in January, adding networks that reach another 15 million locations, including 9 million with fiber. These networks serve about 11 million broadband customers. Verizon also provides telecom services nationwide to enterprise customers, using a mix of its own and other networks.
64GF Score
Get the complete analysis for VZA.PFD
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
VZA.PFD has been successfully added to your 
