Operating profit margin
The share of revenue left as profit from the business itself, before interest and tax.
Operating margin takes revenue and subtracts every operating cost: what was sold, research, sales, marketing and administration. What is left is what the business earns before financing and tax.
It is the cleanest measure of how profitable the business model is, and it is comparable between companies with different debt and tax. Watch the trend: when part of the costs are fixed, margins widen as revenue grows.
Operating margin across the S&P 500 today
420 companies with a meaningful value, as of Oct 11, 2026.
Highest in the S&P 500
| ConocoPhillips COP | 84.3% |
|---|---|
| Applovin Corp APP | 77.4% |
| Texas Pacific Land Corporation TPL | 74.9% |
| Micron Technology Inc MU | 74.6% |
| Regency Centers Corporation REG | 72.3% |
| VeriSign Inc VRSN | 67.9% |
| NVIDIA Corporation NVDA | 65.2% |
| CME Group Inc CME | 65.1% |
| Sandisk Corp SNDK | 61.2% |
| Visa Inc. Class A V | 61.1% |
Lowest in the S&P 500
| Moderna Inc MRNA | -149.0% |
|---|---|
| Invitation Homes Inc INVH | -70.4% |
| Alexandria Real Estate Equities Inc ARE | -69.8% |
| Welltower Inc WELL | -29.1% |
| Paramount Skydance Corporation Class B Common Stock PSKY | -18.0% |
| Kraft Heinz Co KHC | -12.8% |
| Gilead Sciences Inc GILD | -8.2% |
| Invesco Plc IVZ | -7.1% |
| Air Products and Chemicals Inc APD | -4.7% |
| Ford Motor Company F | -3.8% |
Median operating margin by sector
S&P 500 companies only. Sectors differ a lot, so compare a company with its own sector first.
| Sector | Median | Companies |
|---|---|---|
| Communication Services | 25.8% | 20 |
| Financial Services | 23.4% | 40 |
| Energy | 22.9% | 15 |
| Utilities | 22.8% | 29 |
| Technology | 22.8% | 82 |
| Basic Materials | 20.6% | 10 |
| Real Estate | 20.1% | 19 |
| Industrials | 17.5% | 69 |
| Healthcare | 16.9% | 51 |
| Consumer Cyclical | 14.9% | 43 |
| Consumer Defensive | 13.4% | 27 |
Questions
What is Operating margin?
The share of revenue left as profit from the business itself, before interest and tax.
How is Operating margin calculated?
Operating margin = operating income ÷ revenue.
What is a normal operating margin?
Across 420 S&P 500 companies, the median is 18.0%; the middle half sits between 10.4% and 26.9%. It varies a lot by sector.
Related terms
Live figures from the latest prices and SEC filings. Information only, not investment advice. Updated October 9, 2026.