AppleBSP:AAPL34 +0.45%93 Operating Margin % is 32.28% as of Mar. 2026, which is 12% above its 10-year median of 28.81. GuruFocus rates BSP:AAPL34 with a GF Score™ of 93/100 and a GF Value™ of R$69.29 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 2,472 Hardware companies, Apple ranks better than 98.02% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Apple's Operating Income for the
three
months ended in Mar. 2026 was R$187,664 Mil. Apple's Revenue for the
three
months ended in Mar. 2026 was R$581,448 Mil. Therefore, Apple's Operating Margin % for the quarter that ended in Mar. 2026 was 32.28%.
Good Sign:
Apple Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Apple's Operating Margin % or its related term are showing as below:
BSP:AAPL34'
s Operating Margin % Range Over the Past 10 Years
Min: 24.15 Med: 28.81 Max: 32.64
Current: 32.64
BSP:AAPL34's Operating Margin % is ranked better than 98.02% of 2472
companies
in the Hardware industry
Industry Median: 3.8
vs BSP:AAPL34: 32.64
Apple's 5-Year Average Operating Margin % Growth Rate was 4.60% per year.
Apple's Operating Income for the
three
months ended in Mar. 2026 was R$187,664 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was R$795,406 Mil.
Apple (BSP:AAPL34) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
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 Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) 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.
Apple Operating Margin % Related Terms
Apple Operating Margin % Historical Data
* Premium members only.
The historical data trend for Apple's Operating 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.
BSP:AAPL34 vs SONO, VUZI, TBCH: Operating Margin % Comparison
For the Consumer Electronics subindustry, Apple's Operating Margin %, along with its competitors' market caps and Operating 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.
Apple Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Apple's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Apple's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Apple's Operating Margin % for the fiscal year that ended in Sep. 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.
Apple (BSP:AAPL34) has a Operating Margin % of 32.28% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Apple and its competitors. This is 12% above median its historical median of 28.81. Over the past decade, Apple's Operating Margin % has ranged from 24.15 to 32.64. According to the industry distribution chart, Apple ranks #49 out of 2472 companies in the Hardware industry, placing it in the top 2%.
Is Apple's Operating Margin % too high?
Apple's current Operating Margin % of 32.28% is 12% above median its 10-year median of 28.81. Over the past 10 years, this metric has ranged from a low of 24.15 to a high of 32.64. The Hardware industry median Operating Margin % is 3.80. Apple's value of 32.28% is 749.5% above this industry median. Based on the distribution chart, Apple ranks #49 out of 2472 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Apple has a GF Score™ of 93/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Apple's Operating Margin % compare to SONO and VUZI?
According to the Hardware industry distribution chart, Apple ranks #49 out of 2472 companies for Operating Margin %. This places Apple in the top 2% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.80. Apple's value of 32.28% is 749.5% above this benchmark. Historically, Apple's own Operating Margin % has ranged from 24.15 to 32.64 over the past decade. While the company's 10-year median is 28.81 vs. the industry median of 3.80, Apple has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,472 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Apple's current Operating Margin % of 32.28% is 749.5% above 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Apple and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Apple's current Operating Margin % is 32.28%, which is 12% above median its own 10-year median of 28.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Apple stock overvalued right now?
Based on GuruFocus' analysis, Apple (BSP:AAPL34) is currently considered Modestly Overvalued. The stock's GF Value™ is R$69.29, compared to a current price of R$76.64 — trading 10.6% above its estimated fair value. The current Operating Margin % is 32.28%, which is 12% above median its 10-year median of 28.81 and 749.5% above the Hardware industry median of 3.80. Apple's overall GF Score™ is 93/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Apple (BSP:AAPL34), the current Operating Margin % is 32.28% 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 Apple (BSP:AAPL34) Overvalued in 2026?
Based on GuruFocus' analysis, Apple stock appears to be overvalued.
The current stock price of R$76.64 is trading 10.6% above its estimated GF Value™ of R$69.29.
GuruFocus considers Apple to be Modestly Overvalued.
Key valuation signals for BSP:AAPL34:
Operating Margin %: 32.28% (12% above median its 10-year median of 28.81)
GF Value™: R$69.29 vs. price of R$76.64 (10.6% above fair value)
Industry Position: 749.5% above the Hardware median (#49 of 2472)
No single metric tells the full story. See the BSP:AAPL34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Apple is among the largest companies in the world, with a broad portfolio of hardware and software products targeted at consumers and businesses. Apple's iPhone accounts for the majority of the firm's sales, and Apple's other products, such as the Mac, iPad, and Watch, are designed around the iPhone as the focal point of an expansive software ecosystem. Apple has progressively worked to add new applications, such as streaming video, subscription bundles, and augmented reality. The firm designs its own software and semiconductors and works with subcontractors such as Foxconn and TSMC to build its products and chips. Slightly less than half of Apple's sales come directly through its flagship stores, with the majority coming indirectly through partnerships and distribution.
93GF Score
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