AlphabetCHIX:ABECD 93 Net Margin % is 56.94% as of Mar. 2026, which is 156% above its 10-year median of 22.26. GuruFocus rates CHIX:ABECD with a GF Score™ of 93/100 and a GF Value™ of €213.26 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 553 Interactive Media companies, Alphabet ranks better than 93.67% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Alphabet's Net Income for the
three
months ended in Mar. 2026 was €54,130 Mil. Alphabet's Revenue for the
three
months ended in Mar. 2026 was €95,060 Mil. Therefore, Alphabet's net margin for the quarter that ended in Mar. 2026 was 56.94%.
The historical rank and industry rank for Alphabet's Net Margin % or its related term are showing as below:
CHIX:ABECd'
s Net Margin % Range Over the Past 10 Years
Min: 11.42 Med: 22.26 Max: 37.92
Current: 37.92
CHIX:ABECd's Net Margin % is ranked better than 93.67% of 553
companies
in the Interactive Media industry
Industry Median: 1.65
vs CHIX:ABECd: 37.92
Alphabet (CHIX:ABECd) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Alphabet Net Margin % Related Terms
Alphabet Net Margin % Historical Data
* Premium members only.
The historical data trend for Alphabet's Net 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.
CHIX:ABECD vs META, SPOT, NBIS: Net Margin % Comparison
For the Internet Content & Information subindustry, Alphabet's Net Margin %, along with its competitors' market caps and Net 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.
Alphabet Net Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Alphabet's Net Margin % distribution charts can be found below:
* The bar in red indicates where Alphabet's Net 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.
Alphabet (CHIX:ABECD) has a Net Margin % of 56.94% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Alphabet and its competitors. This is 156% above median its historical median of 22.26. Over the past decade, Alphabet's Net Margin % has ranged from 11.42 to 37.92. According to the industry distribution chart, Alphabet ranks #35 out of 553 companies in the Interactive Media industry, placing it in the top 6.3%.
Is Alphabet's Net Margin % too high?
Alphabet's current Net Margin % of 56.94% is 156% above median its 10-year median of 22.26. Over the past 10 years, this metric has ranged from a low of 11.42 to a high of 37.92. The Interactive Media industry median Net Margin % is 1.65. Alphabet's value of 56.94% is 3350.9% above this industry median. Based on the distribution chart, Alphabet ranks #35 out of 553 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. Overall, Alphabet has a GF Score™ of 93/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Alphabet's Net Margin % compare to META and SPOT?
According to the Interactive Media industry distribution chart, Alphabet ranks #35 out of 553 companies for Net Margin %. This places Alphabet in the top 6% of its industry — outperforming the majority of peers. The industry median Net Margin % is 1.65. Alphabet's value of 56.94% is 3350.9% above this benchmark. Historically, Alphabet's own Net Margin % has ranged from 11.42 to 37.92 over the past decade. While the company's 10-year median is 22.26 vs. the industry median of 1.65, Alphabet has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for an Interactive Media company?
The median Net Margin % among Interactive Media companies is 1.65, based on 553 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alphabet's current Net Margin % of 56.94% is 3350.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Alphabet and its competitors. For the Interactive Media industry, the median Net Margin % is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alphabet's current Net Margin % is 56.94%, which is 156% above median its own 10-year median of 22.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alphabet stock overvalued right now?
Based on GuruFocus' analysis, Alphabet (CHIX:ABECD) is currently considered Significantly Overvalued. The stock's GF Value™ is €213.26, compared to a current price of €318.20 — trading 49.2% above its estimated fair value. The current Net Margin % is 56.94%, which is 156% above median its 10-year median of 22.26 and 3350.9% above the Interactive Media industry median of 1.65. Alphabet's overall GF Score™ is 93/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Alphabet (CHIX:ABECD), the current Net Margin % is 56.94% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Alphabet (CHIX:ABECD) Overvalued in 2026?
Based on GuruFocus' analysis, Alphabet stock appears to be overvalued.
The current stock price of €318.20 is trading 49.2% above its estimated GF Value™ of €213.26.
GuruFocus considers Alphabet to be Significantly Overvalued.
Key valuation signals for CHIX:ABECD:
Net Margin %: 56.94% (156% above median its 10-year median of 22.26)
GF Value™: €213.26 vs. price of €318.20 (49.2% above fair value)
Industry Position: 3350.9% above the Interactive Media median (#35 of 553)
No single metric tells the full story. See the CHIX:ABECD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alphabet is a holding company that wholly owns internet giant Google. The California-based company derives slightly less than 90% of its revenue from Google services, the vast majority of which is advertising sales. Alongside online ads, Google services houses sales stemming from Google's subscription services (YouTube TV and YouTube Music, among others), platforms (sales and in-app purchases on Play Store), and devices (Chromebooks, Pixel smartphones, and smart home products such as Chromecast). Google's cloud computing platform accounts for roughly 10% of Alphabet's revenue. The firm's investments in up-and-coming technologies such as self-driving cars (Waymo), health (Verily), and internet access (Google Fiber) make up the rest.
93GF Score
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Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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