Operating margin

Operating margin is the share of revenue a company keeps as operating profit, after production costs and operating expenses but before interest and taxes.

Operating margin is operating income (revenue minus cost of goods sold and operating expenses like R&D, sales, and admin) divided by revenue, as a percentage. It sits between gross margin and net margin and captures how profitable the core business is before the effects of financing and taxes.

Because it excludes interest and taxes, operating margin is a clean way to compare the operational efficiency of companies with different capital structures. A widening operating margin usually means a business is scaling — revenue is growing faster than its operating costs.

stocks-llm shows operating margin as delayed data from Finnhub with its as-of date.

Highest operating-margin companies →

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Informational only — NOT financial advice. This is an educational definition, not a recommendation to buy or sell anything. Metrics on stocks-llm are delayed data and may be missing or stale. Always verify information independently and consult a qualified financial professional before making any investment decision.