Xero (XERYY) Net Margin %: 1.72% (As of Mar. 2026)


What is Xero Net Margin %?

Xero XERYY 76 Net Margin % is 1.72% as of Mar. 2026. GuruFocus rates XERYY with a GF Score™ of 76/100. The stock has 7 warning signs investors should review. Among 2,825 Software companies, Xero ranks better than 62.69% on this metric.

Net margin is calculated as Net Income divided by its Revenue. Xero's Net Income for the six months ended in Mar. 2026 was $15.08 Mil. Xero's Revenue for the six months ended in Mar. 2026 was $876.59 Mil. Therefore, Xero's net margin for the quarter that ended in Mar. 2026 was 1.72%.

The historical rank and industry rank for Xero's Net Margin % or its related term are showing as below:

XERYY' s Net Margin % Range Over the Past 10 Years
Min: -23.38   Med: -0.19   Max: 10.83
Current: 6.08

XERYY's Net Margin % is ranked better than
62.69% of 2825 companies
in the Software industry
Industry Median: 2.54 vs XERYY: 6.08

Xero  (OTCPK:XERYY) 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.

Xero Net Margin % Related Terms

Xero Net Margin % Historical Data

* Premium members only.

The historical data trend for Xero'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.

Xero Net Margin % Chart

Xero Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Net Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.83 -8.11 10.19 10.83 6.08

Xero Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Net Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.26 9.55 12.02 11.29 1.72

XERYY vs CRM, SHOP, UBER: Net Margin % Comparison

For the Software - Application subindustry, Xero'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.

Xero Net Margin % vs Software Industry

For the Software industry and Technology sector, Xero's Net Margin % distribution charts can be found below:

* The bar in red indicates where Xero's Net Margin % falls into.


Xero Net Margin % Calculation

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

Xero's Net Margin for the fiscal year that ended in Mar. 2026 is calculated as

Net Margin=Net Income (A: Mar. 2026 )/Revenue (A: Mar. 2026 )
=97.972/1611.063
=6.08 %

Xero's Net Margin for the quarter that ended in Mar. 2026 is calculated as

Net Margin=Net Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=15.075/876.593
=1.72 %

* 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.

Frequently Asked Questions Learn more about Net Margin % →
What does a Net Margin % of 1.72% mean?
Xero (XERYY) has a Net Margin % of 1.72% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Xero and its competitors. According to the industry distribution chart, Xero ranks #1054 out of 2825 companies in the Software industry, placing it in the top 37.3%.
Is Xero's Net Margin % too high?
Xero's current Net Margin % is 1.72%. The Software industry median Net Margin % is 2.54. Xero's value of 1.72% is 32.3% below this industry median. Based on the distribution chart, Xero ranks #1054 out of 2825 companies in the Software industry, which is above the industry midpoint. Overall, Xero has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does Xero's Net Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Xero ranks #1054 out of 2825 companies for Net Margin %. This puts Xero in the upper half of its industry. The industry median Net Margin % is 2.54. Xero's value of 1.72% is 32.3% below this benchmark. 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 a Software company?
The median Net Margin % among Software companies is 2.54, based on 2,825 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. Xero's current Net Margin % of 1.72% is 32.3% below 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 Xero and its competitors. For the Software industry, the median Net Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xero's current Net Margin % is 1.72%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xero stock overvalued right now?
Xero (XERYY) has a current Net Margin % of 1.72%. The current Net Margin % is 1.72% and 32.3% below the Software industry median of 2.54. Xero's overall GF Score™ is 76/100 with 7 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 Xero (XERYY), the current Net Margin % is 1.72% 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.

Xero Business Description

Address 19-23 Taranaki Street, Te Aro, Wellington, NTL, NZL, 6011
Xero is a technology company originating from New Zealand, providing cloud-based accounting software, primarily for small and midsized enterprises, or SMEs, and accounting practices. As a first mover in the space for cloud-based accounting software, Xero has grown quickly to achieve dominant market share in New Zealand and Australia, displacing legacy providers. Xero has also expanded beyond its home region toward other English-speaking countries, primarily the UK and the US.