Inspur Digital Enterprise Technology (XTER:L1CC) Gross Margin %: 33.73% (As of Dec. 2025)— 15% Above Median
What is Inspur Digital Enterprise Technology Gross Margin %?
Inspur Digital Enterprise TechnologyXTER:L1CC 69 Gross Margin % is 33.73% as of Dec. 2025, which is 15% above its 10-year median of 29.38. GuruFocus rates XTER:L1CC with a GF Score™ of 69/100. The stock has 8 warning signs investors should review. Among 2,681 Software companies, Inspur Digital Enterprise Technology ranks worse than 66.54% on this metric.
Inspur Digital Enterprise Technology (XTER:L1CC) 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
Inspur Digital Enterprise Technology had a gross margin of 33.73% for the quarter that ended in Dec. 2025 => Competition eroding margins
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.
Inspur Digital Enterprise Technology Gross Margin % Related Terms
Inspur Digital Enterprise Technology 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.
Inspur Digital Enterprise Technology Gross Margin % Chart
XTER:L1CC vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, Inspur Digital Enterprise Technology'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.
Inspur Digital Enterprise Technology Gross Margin % vs Software Industry
* 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.
Inspur Digital Enterprise Technology (XTER:L1CC) has a Gross Margin % of 33.73% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Inspur Digital Enterprise Technology and its competitors. This is 15% above median its historical median of 29.38. Over the past decade, Inspur Digital Enterprise Technology's Gross Margin % has ranged from 20.69 to 38.43. According to the industry distribution chart, Inspur Digital Enterprise Technology ranks #1784 out of 2681 companies in the Software industry, placing it in the top 66.5%.
Is Inspur Digital Enterprise Technology's Gross Margin % too high?
Inspur Digital Enterprise Technology's current Gross Margin % of 33.73% is 15% above median its 10-year median of 29.38. Over the past 10 years, this metric has ranged from a low of 20.69 to a high of 38.43. The Software industry median Gross Margin % is 40.41. Inspur Digital Enterprise Technology's value of 33.73% is 16.5% below this industry median. Based on the distribution chart, Inspur Digital Enterprise Technology ranks #1784 out of 2681 companies in the Software industry, which is below the industry midpoint. Overall, Inspur Digital Enterprise Technology has a GF Score™ of 69/100, reflecting its overall financial health beyond just this single metric.
How does Inspur Digital Enterprise Technology's Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Inspur Digital Enterprise Technology ranks #1784 out of 2681 companies for Gross Margin %. This places Inspur Digital Enterprise Technology in the lower half of its industry. The industry median Gross Margin % is 40.41. Inspur Digital Enterprise Technology's value of 33.73% is 16.5% below this benchmark. Historically, Inspur Digital Enterprise Technology's own Gross Margin % has ranged from 20.69 to 38.43 over the past decade. While the company's 10-year median is 29.38 vs. the industry median of 40.41, Inspur Digital Enterprise Technology has consistently been below 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 40.41, based on 2,681 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. Inspur Digital Enterprise Technology's current Gross Margin % of 33.73% is 16.5% below 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 Inspur Digital Enterprise Technology and its competitors. For the Software industry, the median Gross Margin % is 40.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Inspur Digital Enterprise Technology's current Gross Margin % is 33.73%, which is 15% above median its own 10-year median of 29.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Inspur Digital Enterprise Technology stock overvalued right now?
Inspur Digital Enterprise Technology (XTER:L1CC) has a current Gross Margin % of 33.73%. The current Gross Margin % is 33.73%, which is 15% above median its 10-year median of 29.38 and 16.5% below the Software industry median of 40.41. Inspur Digital Enterprise Technology's overall GF Score™ is 69/100 with 8 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 Inspur Digital Enterprise Technology (XTER:L1CC), the current Gross Margin % is 33.73% as of Dec. 2025. 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.
Inspur Digital Enterprise Technology Business Description
Inspur Digital Enterprise Technology Ltd is an investment holding company. The company's segments are Cloud services, Management software, and the Internet of Things. The Cloud services segment includes the provision of cloud services. The management software segment involves the provision of software development and other software services, whereas the Internet of Things segment is engaged in the provision of data centre engineering services and sales of IT peripherals and software. Geographically, the firm generates a majority of its revenue from Mainland China, and also has its presence in Hong Kong and Other countries.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XTER:L1CC has been successfully added to your 