Rakuten Group (FRA:RAKA) Operating Income: €336 Mil (TTM As of Mar. 2026)

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FRA:RAKA Rakuten Group Inc FRA:RAKA
61 GF Score
Price €4.14
GF Value €4.80
! 6 Warning Signs
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What is Rakuten Group Operating Income?

Rakuten Group FRA:RAKA -1.43% 61 Operating Income is €336 Mil as of Mar. 2026. GuruFocus rates FRA:RAKA with a GF Score™ of 61/100 and a GF Value™ of €4.80. The stock has 6 warning signs investors should review.

Rakuten Group's Operating Income for the three months ended in Mar. 2026 was €166 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €336 Mil.

Warning Sign:

Rakuten Group Inc had lost money in 50% of the time over the past 12quarters.

Operating Margin % is calculated as Operating Income divided by its Revenue. Rakuten Group's Operating Income for the three months ended in Mar. 2026 was €166 Mil. Rakuten Group's Revenue for the three months ended in Mar. 2026 was €3,508 Mil. Therefore, Rakuten Group's Operating Margin % for the quarter that ended in Mar. 2026 was 4.72%.

Rakuten Group's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Rakuten Group's annualized ROC % for the quarter that ended in Mar. 2026 was 0.00%. Rakuten Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 15.33%.


Rakuten Group  (FRA:RAKA) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Rakuten Group's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=662.728 * ( 1 - 100% )/( (122525.79 + 129322.118)/ 2 )
=0/125923.954
=0.00 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=157771.591 - 3271.447 - ( 31974.354 - max(0, 3271.447 - 84264.864+31974.354))
=122525.79

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=159794.425 - 2986.26 - ( 27486.047 - max(0, 2986.26 - 80601.54+27486.047))
=129322.118

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Rakuten Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=897.712/( ( (5852.591 + max(-841.93399999999, 0)) + (5859.697 + max(-739.98600000001, 0)) )/ 2 )
=897.712/( ( 5852.591 + 5859.697 )/ 2 )
=897.712/5856.144
=15.33 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2429.514 + 0 + -0.00099999998928979) - (3271.447 + 0 + 0)
=-841.93399999999

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2246.274 + 0 + -1.4551915228367E-11) - (2986.26 + 0 + 0)
=-739.98600000001

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Rakuten Group's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=165.682/3508.254
=4.72 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Rakuten Group Operating Income Related Terms


Rakuten Group Operating Income Historical Data

* Premium members only.

The historical data trend for Rakuten Group's Operating Income 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.

Rakuten Group Operating Income Chart

Rakuten Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1,513.91 -2,600.17 -1,355.66 328.91 78.78

Rakuten Group Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income 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 -95.84 53.01 45.84 71.40 165.68
FRA:RAKA
61GF Score
Rakuten Group Inc FRA:RAKA
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Rakuten Group Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €336 Mil.

* 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 Operating Income →
What does a Operating Income of €336 Mil mean?
Rakuten Group (FRA:RAKA) has a Operating Income of €336 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Rakuten Group and its competitors.
Is Rakuten Group's Operating Income too high?
Rakuten Group's current Operating Income is €336 Mil. Overall, Rakuten Group has a GF Score™ of 61/100, reflecting its overall financial health beyond just this single metric.
How does Rakuten Group's Operating Income compare to AMZN and BABA?
Rakuten Group's Operating Income of €336 Mil can be compared against companies in the Retail - Cyclical industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Retail - Cyclical company?
A good Operating Income depends on the Retail - Cyclical industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Rakuten Group and its competitors. Rakuten Group's current Operating Income is €336 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rakuten Group stock overvalued right now?
Rakuten Group (FRA:RAKA) has a current Operating Income of €336 Mil. The stock's GF Value™ is €4.80, compared to a current price of €4.14 — trading 13.8% below its estimated fair value. The current Operating Income is €336 Mil. Rakuten Group's overall GF Score™ is 61/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Rakuten Group (FRA:RAKA), the current Operating Income is €336 Mil 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 Rakuten Group (FRA:RAKA) Overvalued in 2026?

Based on GuruFocus' analysis, Rakuten Group stock appears to be undervalued. The current stock price of €4.14 is trading 13.8% below its estimated GF Value™ of €4.80.

Key valuation signals for FRA:RAKA:

  • Operating Income: €336 Mil
  • GF Value™: €4.80 vs. price of €4.14 (13.8% below fair value)
  • GF Score™: 61/100 with 6 warning signs

No single metric tells the full story. See the FRA:RAKA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Rakuten Group Business Description

Address 1-14-1 Tamagawa, Rakuten Crimson House, Setagaya-ku, Tokyo, JPN, 158-0094
Rakuten is a leading e-commerce and financial technology service provider in Japan. It has built up a comprehensive Rakuten ecosystem in Japan, including Rakuten Ichiba for e-commerce, Rakuten Travel, Rakuten Card, Rakuten Bank, and Rakuten Securities, and became the fourth mobile network operator in Japan in April 2020. The loyalty program, Rakuten Super Points, has encouraged cross-use of services in its ecosystem. About 90% of its revenue is generated from the Japanese market.
61GF Score

Get the complete analysis for FRA:RAKA

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€4.14
Price
€4.80
GF Value