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Alphabet Inc
NASDAQ:GOOG

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Alphabet Inc
NASDAQ:GOOG
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Price: 294.46 USD Market Closed
Market Cap: $3.6T

Operating Margin

33.6%
Current
Improving
by 2.9%
vs 3-y average of 30.7%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin
33.6%
=
Operating Income
$135.2B
/
Revenue
$402.8B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin
33.6%
=
Operating Income
$135.2B
/
Revenue
$402.8B

Peer Comparison

Country Company Market Cap Operating
Margin
US
Alphabet Inc
NASDAQ:GOOGL
3.6T USD
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US
Apple Inc
NASDAQ:AAPL
3.8T USD
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US
Microsoft Corp
NASDAQ:MSFT
2.8T USD
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US
Amazon.com Inc
NASDAQ:AMZN
2.3T USD
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US
Meta Platforms Inc
NASDAQ:META
1.4T USD
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US
Oracle Corp
NYSE:ORCL
420.8B USD
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US
International Business Machines Corp
NYSE:IBM
232B USD
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US
Salesforce Inc
NYSE:CRM
175.4B USD
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JP
SoftBank Group Corp
TSE:9984
20.6T JPY
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US
Snowflake Inc.
NYSE:SNOW
52.2B USD
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CN
Tencent Holdings Ltd
HKEX:700
4.5T HKD
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Market Distribution

Higher than 92% of companies in the United States of America
Percentile
92st
Based on 14 112 companies
92st percentile
33.6%
Low
-4 087 900% — -5.1%
Typical Range
-5.1% — 14.8%
High
14.8% — 1 032 600%
Distribution Statistics
the United States of America
Min -4 087 900%
30th Percentile -5.1%
Median 6%
70th Percentile 14.8%
Max 1 032 600%

Alphabet Inc
Glance View

Alphabet Inc., birthed from the colossal success of Google, stands as a testament to the transformative power of innovation and strategic diversification. Born out of a reorganization in 2015, Alphabet was designed to segregate Google's core services, like search and advertising, from its wildly ambitious "Other Bets" ventures, such as self-driving cars, health tech, and urban innovation initiatives. This structural transformation enabled Alphabet to pursue moonshot ideas without hampering the profitability and operational focus of Google's core business. Google, undeniably the crown jewel of Alphabet's empire, drives the vast majority of the company's revenue through its dominance in digital advertising. With unparalleled reach through its search engine, YouTube, and the Google Display Network, Google captures billions in revenue by connecting advertisers with an expansive global audience. Beyond advertising, Alphabet has ventured into various sectors to broaden its revenue streams. Google Cloud, for example, has carved out a substantial niche in the competitive cloud computing industry, catering to both corporate giants and budding startups with its powerful infrastructure and artificial intelligence capabilities. Meanwhile, the company's "Other Bets," though yet to reach the financial heights of Google, represent a bold exploration into emerging technologies. Projects like Waymo seek to revolutionize transportation with autonomous vehicles, while initiatives under Verily and Calico aim to extend human life and enhance healthcare. In this way, Alphabet not only continues to fortify its dominance in the digital realm but also positions itself as a vanguard of future technological breakthroughs.

GOOG Intrinsic Value
185.76 USD
Overvaluation 37%
Intrinsic Value
Price $294.46
What is Operating Margin?
Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.
How is Operating Margin calculated?

Operating Margin is calculated by dividing the Operating Income by the Revenue.

Operating Margin
33.6%
=
Operating Income
$135.2B
/
Revenue
$402.8B
What is Alphabet Inc's current Operating Margin?

The current Operating Margin for Alphabet Inc is 33.6%, which is above its 3-year median of 30.7%.

How has Operating Margin changed over time?

Over the last 3 years, Alphabet Inc’s Operating Margin has increased from 26.5% to 33.6%. During this period, it reached a low of 26.3% on Mar 31, 2023 and a high of 33.6% on Jan 1, 2026.

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