OracleBUE:ORCL -3.94%90 Operating Margin % is 36.25% as of May. 2026, which is 2% above its 10-year median of 35.40. GuruFocus rates BUE:ORCL with a GF Score™ of 90/100 and a GF Value™ of ARS94,769.75 (Fairly Valued). The stock has 6 warning signs investors should review. Among 2,818 Software companies, Oracle ranks better than 95.99% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Oracle's Operating Income for the
three
months ended in May. 2026 was ARS9,819,333 Mil. Oracle's Revenue for the
three
months ended in May. 2026 was ARS27,084,699 Mil. Therefore, Oracle's Operating Margin % for the quarter that ended in May. 2026 was 36.25%.
Warning Sign:
Oracle Corp operating margin has been in a 5-year decline. The average rate of decline per year is -3.4%.
The historical rank and industry rank for Oracle's Operating Margin % or its related term are showing as below:
BUE:ORCL'
s Operating Margin % Range Over the Past 10 Years
Min: 27.57 Med: 35.4 Max: 38.99
Current: 33.32
BUE:ORCL's Operating Margin % is ranked better than 95.99% of 2818
companies
in the Software industry
Industry Median: 3.875
vs BUE:ORCL: 33.32
Oracle's 5-Year Average Operating Margin % Growth Rate was -3.40% per year.
Oracle's Operating Income for the
three
months ended in May. 2026 was ARS9,819,333 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in May. 2026 was ARS31,487,955 Mil.
Oracle (BUE:ORCL) 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.
Oracle Operating Margin % Related Terms
Oracle Operating Margin % Historical Data
* Premium members only.
The historical data trend for Oracle'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.
BUE:ORCL vs PLTR, PANW, CRWD: Operating Margin % Comparison
For the Software - Infrastructure subindustry, Oracle'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.
Oracle Operating Margin % vs Software Industry
For the Software industry and Technology sector, Oracle's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Oracle'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.
Oracle's Operating Margin % for the fiscal year that ended in May. 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.
Oracle (BUE:ORCL) has a Operating Margin % of 36.25% as of May. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Oracle and its competitors. This is near median its historical median of 35.40. Over the past decade, Oracle's Operating Margin % has ranged from 27.57 to 38.99. According to the industry distribution chart, Oracle ranks #113 out of 2818 companies in the Software industry, placing it in the top 4%.
Is Oracle's Operating Margin % too high?
Oracle's current Operating Margin % of 36.25% is near median its 10-year median of 35.40. Over the past 10 years, this metric has ranged from a low of 27.57 to a high of 38.99. The Software industry median Operating Margin % is 3.88. Oracle's value of 36.25% is 835.5% above this industry median. Based on the distribution chart, Oracle ranks #113 out of 2818 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Oracle has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Oracle's Operating Margin % compare to PLTR and PANW?
According to the Software industry distribution chart, Oracle ranks #113 out of 2818 companies for Operating Margin %. This places Oracle in the top 4% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.88. Oracle's value of 36.25% is 835.5% above this benchmark. Historically, Oracle's own Operating Margin % has ranged from 27.57 to 38.99 over the past decade. While the company's 10-year median is 35.40 vs. the industry median of 3.88, Oracle 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 Software company?
The median Operating Margin % among Software companies is 3.88, based on 2,818 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. Oracle's current Operating Margin % of 36.25% is 835.5% 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 Oracle and its competitors. For the Software industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Oracle's current Operating Margin % is 36.25%, which is near median its own 10-year median of 35.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Oracle stock overvalued right now?
Based on GuruFocus' analysis, Oracle (BUE:ORCL) is currently considered Fairly Valued. The stock's GF Value™ is ARS94,769.75, compared to a current price of ARS85,850.00 — trading 9.4% below its estimated fair value. The current Operating Margin % is 36.25%, which is near median its 10-year median of 35.40 and 835.5% above the Software industry median of 3.88. Oracle's overall GF Score™ is 90/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Oracle (BUE:ORCL), the current Operating Margin % is 36.25% as of May. 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 Oracle (BUE:ORCL) Overvalued in 2026?
Based on GuruFocus' analysis, Oracle stock appears to be undervalued.
The current stock price of ARS85,850.00 is trading 9.4% below its estimated GF Value™ of ARS94,769.75.
GuruFocus considers Oracle to be Fairly Valued.
Key valuation signals for BUE:ORCL:
Operating Margin %: 36.25% (near median its 10-year median of 35.40)
GF Value™: ARS94,769.75 vs. price of ARS85,850.00 (9.4% below fair value)
Industry Position: 835.5% above the Software median (#113 of 2818)
No single metric tells the full story. See the BUE:ORCL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Oracle provides enterprise applications and infrastructure offerings through a variety of flexible IT deployment models, including on-premises, cloud-based, and hybrid. Founded in 1977, Oracle pioneered the first commercial SQL-based relational database management system, which is commonly used by the world's largest companies for high-volume online transaction processing workloads. Besides databases, Oracle also sells enterprise resource planning platforms and cloud infrastructure that play an increasingly important role in large language model training and inferencing.
90GF Score
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