Gross Margin % is calculated as gross profit divided by its revenue. AT&T's Gross Profit for the
three
months ended in Mar. 2025 was $18,593 Mil. AT&T's Revenue for the
three
months ended in Mar. 2025 was $30,626 Mil. Therefore, AT&T's Gross Margin % for the quarter that ended in Mar. 2025 was 60.71%.
The historical rank and industry rank for AT&T's Gross Margin % or its related term are showing as below:
T'
s Gross Margin % Range Over the Past 10 Years
Min: 51.53 Med: 54.22 Max: 59.9
Current: 59.9
During the past 13 years, the highestGross Margin % of AT&T was 59.90%. The lowest was 51.53%. And the median was 54.22%.
T's Gross Margin % is ranked better than 64.64% of 345
companies
in the Telecommunication Services industry
Industry Median: 51.63
vs T: 59.90
AT&T had a gross margin of 60.71% for the quarter that ended in Mar. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for AT&T was 2.50% per year.
AT&T Gross Margin % Historical Data
The historical data trend for AT&T'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, AT&T'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.
AT&T's Gross Margin % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, AT&T's Gross Margin % distribution charts can be found below:
* The bar in red indicates where AT&T'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.
AT&T (NYSE:T) 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
AT&T had a gross margin of 60.71% for the quarter that ended in Mar. 2025 => 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.
AT&T Gross Margin % Related Terms
Thank you for viewing the detailed overview of AT&T's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
The wireless business contributes nearly 70% of AT&T's revenue. The firm is the third-largest US wireless carrier, connecting 73 million postpaid and 17 million prepaid phone customers. Fixed-line enterprise services, which account for about 15% of revenue, include internet access, private networking, security, voice, and wholesale network capacity. Residential fixed-line services, about 11% of revenue, primarily consist of broadband internet access, serving 14 million customers. AT&T also has a sizable presence in Mexico, with 24 million customers, but this business only accounts for 3% of revenue. The firm has agreed to sell its 70% equity stake in satellite television provider DirecTV to its partner, private equity firm TPG.
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