Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Nestle's Operating Income for the
six
months ended in Dec. 2025 was CHF6,770 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was CHF13,981 Mil.
Operating Margin % is calculated as Operating Income divided by its Revenue. Nestle's Operating Income for the
six
months ended in Dec. 2025 was CHF6,770 Mil. Nestle's Revenue for the
six
months ended in Dec. 2025 was CHF45,475 Mil. Therefore, Nestle's Operating Margin % for the quarter that ended in Dec. 2025 was 14.89%.
Warning Sign:
Nestle SA operating margin has been in a 5-year decline. The average rate of decline per year is -1.3%.
Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.
Nestle's annualizedROC % for the quarter that ended in Dec. 2025 was 8.95%.
Nestle's annualizedROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 34.67%.
Nestle (XSWX:NESN) Operating Income Explanation
1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.
Nestle's annualizedROC % for the quarter that ended in Dec. 2025 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.
Nestle Operating Income Related Terms
Nestle Operating Income Historical Data
* Premium members only.
The historical data trend for Nestle'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 Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was CHF13,981 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.
What does a Operating Income of CHF13,981 Mil mean?
Nestle (XSWX:NESN) has a Operating Income of CHF13,981 Mil as of Dec. 2025. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Nestle and its competitors.
Is Nestle's Operating Income too high?
Nestle's current Operating Income is CHF13,981 Mil. Overall, Nestle has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nestle's Operating Income compare to KHC and GIS?
Nestle's Operating Income of CHF13,981 Mil can be compared against companies in the Consumer Packaged Goods 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 Consumer Packaged Goods company?
A good Operating Income depends on the Consumer Packaged Goods 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 Nestle and its competitors. Nestle's current Operating Income is CHF13,981 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nestle stock overvalued right now?
Based on GuruFocus' analysis, Nestle (XSWX:NESN) is currently considered Fairly Valued. The stock's GF Value™ is CHF88.75, compared to a current price of CHF85.55 — trading 3.6% below its estimated fair value. The current Operating Income is CHF13,981 Mil. Nestle's overall GF Score™ is 79/100 with 9 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 Nestle (XSWX:NESN), the current Operating Income is CHF13,981 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.
Is Nestle (XSWX:NESN) Overvalued in 2026?
Based on GuruFocus' analysis, Nestle stock appears to be undervalued.
The current stock price of CHF85.55 is trading 3.6% below its estimated GF Value™ of CHF88.75.
GuruFocus considers Nestle to be Fairly Valued.
Key valuation signals for XSWX:NESN:
Operating Income: CHF13,981 Mil
GF Value™: CHF88.75 vs. price of CHF85.55 (3.6% below fair value)
No single metric tells the full story. See the XSWX:NESN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
With a 150-year-plus history, Nestle is the largest food and beverage manufacturer in the world by sales, generating roughly CHF 90 billion in annual revenue. Its diverse product portfolio includes brands such as Nescafe, Maggi, Nespresso, and Purina. The company employs 270,000 people around the world and has a vast portfolio of global products, with more than 30 brands each achieving more than CHF 1 billion in sales annually and a geographic presence that spans 185 countries.
79GF Score
Get the complete analysis for XSWX:NESN
Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XSWX:NESN has been successfully added to your 
