Volvo AB's Operating Income for the
three
months ended in Mar. 2026 was $1,175 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $5,092 Mil.
Operating Margin % is calculated as Operating Income divided by its Revenue. Volvo AB's Operating Income for the
three
months ended in Mar. 2026 was $1,175 Mil. Volvo AB's Revenue for the
three
months ended in Mar. 2026 was $11,888 Mil. Therefore, Volvo AB's Operating Margin % for the quarter that ended in Mar. 2026 was 9.89%.
Good Sign:
Volvo AB operating margin is expanding. Margin expansion is usually a good sign.
Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.
Volvo AB's annualizedROC % for the quarter that ended in Mar. 2026 was 6.23%.
Volvo AB's annualizedROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 23.55%.
Volvo AB (OTCPK:VOLAF) Operating Income Explanation
1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.
Volvo AB's annualizedROC % for the quarter that ended in Mar. 2026 is calculated as:
* 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.
Volvo AB Operating Income Related Terms
Volvo AB Operating Income Historical Data
* Premium members only.
The historical data trend for Volvo AB'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.
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 $5,092 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.
Volvo AB (VOLAF) has a Operating Income of $5,092 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Volvo AB and its competitors.
Is Volvo AB's Operating Income too high?
Volvo AB's current Operating Income is $5,092 Mil. Overall, Volvo AB has a GF Score™ of 89/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Volvo AB's Operating Income compare to CAT and DE?
Volvo AB's Operating Income of $5,092 Mil can be compared against companies in the Farm & Heavy Construction Machinery 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 Farm & Heavy Construction Machinery company?
A good Operating Income depends on the Farm & Heavy Construction Machinery 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 Volvo AB and its competitors. Volvo AB's current Operating Income is $5,092 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Volvo AB stock overvalued right now?
Based on GuruFocus' analysis, Volvo AB (VOLAF) is currently considered Significantly Overvalued. The stock's GF Value™ is $25.40, compared to a current price of $34.15 — trading 34.4% above its estimated fair value. The current Operating Income is $5,092 Mil. Volvo AB's overall GF Score™ is 89/100 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 Volvo AB (VOLAF), the current Operating Income is $5,092 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 Volvo AB (VOLAF) Overvalued in 2026?
Based on GuruFocus' analysis, Volvo AB stock appears to be overvalued.
The current stock price of $34.15 is trading 34.4% above its estimated GF Value™ of $25.40.
GuruFocus considers Volvo AB to be Significantly Overvalued.
Key valuation signals for VOLAF:
Operating Income: $5,092 Mil
GF Value™: $25.40 vs. price of $34.15 (34.4% above fair value)
No single metric tells the full story. See the VOLAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Volvo Group is one of the largest global truck, bus, construction equipment, and engine and power system original equipment manufacturers, operating with the Volvo, Renault Truck, Mack Trucks, Volvo Penta, and Nova Bus brands. Among the four largest Western global brands—Volvo, Daimler, Paccar, and Traton—Volvo ranks third in terms of annual deliveries. Its truck, construction equipment, bus, and engines and power system segments contributed 71%, 18%, 5%, and 5%, respectively, to industrial operations' revenue in 2025. An in-house financial services division supports these businesses. In its key regions of Europe, North America, Brazil, and Australia, the truck business holds large market shares of 29%, 17%, 24%, and 22%, respectively.
89GF Score
Get the complete analysis for VOLAF
Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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