SDZXF (Sandoz Group AG) Operating Income: $1,425 Mil (TTM As of Dec. 2025)


SDZXF Sandoz Group AG SDZXF
18 GF Score
Price $89.55
! 6 Warning Signs
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What is Sandoz Group AG Operating Income?

Sandoz Group AG SDZXF 18 Operating Income is $1,425 Mil as of Dec. 2025. GuruFocus rates SDZXF with a GF Score™ of 18/100. The stock has 6 warning signs investors should review.

Sandoz Group AG's Operating Income for the six months ended in Dec. 2025 was $823 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was $1,425 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Sandoz Group AG's Operating Income for the six months ended in Dec. 2025 was $823 Mil. Sandoz Group AG's Revenue for the six months ended in Dec. 2025 was $5,892 Mil. Therefore, Sandoz Group AG's Operating Margin % for the quarter that ended in Dec. 2025 was 13.97%.

Sandoz Group AG'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. Sandoz Group AG's annualized ROC % for the quarter that ended in Dec. 2025 was 7.04%. Sandoz Group AG's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 55.88%.

Sandoz Group AG  (OTCPK:SDZXF) Operating Income Explanation

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

Sandoz Group AG's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=1646 * ( 1 - 23.61% )/( (17878 + 17828)/ 2 )
=1257.3794/17853
=7.04 %

where

Invested Capital(Q: Jun. 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))
=21611 - 2344 - ( 1389 - max(0, 6477 - 8374+1389))
=17878

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))
=22032 - 2934 - ( 1739 - max(0, 6895 - 8165+1739))
=17828

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

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

Sandoz Group AG's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1624/( ( (2330 + max(702, 0)) + (2780 + max(-59, 0)) )/ 2 )
=1624/( ( 3032 + 2780 )/ 2 )
=1624/2906
=55.88 %

where Working Capital is:

Working Capital(Q: Jun. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2314 + 3077 + 1594) - (2344 + 0 + 3939)
=702

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2508 + 2845 + 810) - (2934 + 0 + 3288)
=-59

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

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

Sandoz Group AG's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2025 )/Revenue (Q: Dec. 2025 )
=823/5892
=13.97 %

* 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.

Sandoz Group AG Operating Income Related Terms

Sandoz Group AG Operating Income Historical Data

* Premium members only.

The historical data trend for Sandoz Group AG'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.

Sandoz Group AG Operating Income Chart

Sandoz Group AG Annual Data
Trend Dec22 Dec23 Dec24 Dec25
Operating Income
1,239.00 375.00 307.00 1,425.00

Sandoz Group AG Semi-Annual Data
Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Operating Income Get a 7-Day Free Trial -87.00 332.00 -25.00 602.00 823.00
SDZXF
18GF Score
Sandoz Group AG SDZXF
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Sandoz Group AG 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 Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was $1,425 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 $1,425 Mil mean?
Sandoz Group AG (SDZXF) has a Operating Income of $1,425 Mil as of Dec. 2025. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Sandoz Group AG and its competitors.
Is Sandoz Group AG's Operating Income too high?
Sandoz Group AG's current Operating Income is $1,425 Mil. Overall, Sandoz Group AG has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Sandoz Group AG's Operating Income compare to ZTS and UTHR?
Sandoz Group AG's Operating Income of $1,425 Mil can be compared against companies in the Drug Manufacturers 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 Drug Manufacturers company?
A good Operating Income depends on the Drug Manufacturers 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 Sandoz Group AG and its competitors. Sandoz Group AG's current Operating Income is $1,425 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sandoz Group AG stock overvalued right now?
Sandoz Group AG (SDZXF) has a current Operating Income of $1,425 Mil. The current Operating Income is $1,425 Mil. Sandoz Group AG's overall GF Score™ is 18/100 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 Sandoz Group AG (SDZXF), the current Operating Income is $1,425 Mil as of Dec. 2025. 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.

Sandoz Group AG Business Description

Address Centralbahnstrasse 4, Basel, CHE, 4051
Sandoz is one of the largest generic pharmaceutical manufacturers in the world, generating over $11 billion annually from off-patent drugs. Once part of Novartis, Sandoz spun off and went public in October 2023. Generics, including small molecules and complex injectables, make up roughly 75% of Sandoz's total sales, and the firm has a significant presence in Europe, the United States, and other key international markets. Sandoz generates its remaining sales from biosimilars and is among the leaders in the space. Sandoz launched Europe's first biosimilar, Omnitrope, in 2006, as well as the first US biosimilar, Zarxio, in 2015. It has over 10 launched biosimilars in a number of markets and over 20 assets in its pipeline.
18GF Score

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

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