Operating Margin
Operating margin is operating income as a percentage of revenue — how much profit a company keeps from its core operations before interest and taxes. Expanding operating margin signals improving efficiency or pricing power; contracting margin flags cost or competitive pressure.
Seen in a real earnings call
“…this was offset in the quarter by lower operating costs and strong operating leverage tied to simplification and efficiency actions. Net-net, our operating margin remained around flat for the quarter at 42% on a non-GAAP basis. This all translated to a strong increase…”Oracle Corporation (ORCL) — earnings call, September 10, 2026