Verizon CommunicationsCHIX:BACD 49 Operating Margin % is 23.93% as of Mar. 2026, which is 7% above its 10-year median of 22.36. GuruFocus rates CHIX:BACD with a GF Score™ of 49/100 and a GF Value™ of €37.01 (Fairly Valued). The stock has 6 warning signs investors should review. Among 367 Telecommunication Services companies, Verizon Communications ranks better than 77.66% on this metric.
Verizon Communications Inc operating margin has been in a 5-year decline. The average rate of decline per year is -2.1%.
The historical rank and industry rank for Verizon Communications's Operating Margin % or its related term are showing as below:
CHIX:BACd'
s Operating Margin % Range Over the Past 10 Years
Min: 20.53 Med: 22.36 Max: 24.29
Current: 21.22
CHIX:BACd's Operating Margin % is ranked better than 77.66% of 367
companies
in the Telecommunication Services industry
Industry Median: 9.73
vs CHIX:BACd: 21.22
Verizon Communications's 5-Year Average Operating Margin % Growth Rate was -2.10% per year.
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.
Verizon Communications Operating Margin % Related Terms
Verizon Communications Operating Margin % Historical Data
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The historical data trend for Verizon Communications'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.
CHIX:BACD vs TMUS, T, CMCSA: Operating Margin % Comparison
For the Telecom Services subindustry, Verizon Communications'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.
Verizon Communications Operating Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Verizon Communications's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Verizon Communications'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.
Verizon Communications's Operating Margin % for the fiscal year 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.
Verizon Communications (CHIX:BACD) has a Operating Margin % of 23.93% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Verizon Communications and its competitors. This is near median its historical median of 22.36. Over the past decade, Verizon Communications' Operating Margin % has ranged from 20.53 to 24.29. According to the industry distribution chart, Verizon Communications ranks #82 out of 367 companies in the Telecommunication Services industry, placing it in the top 22.3%.
Is Verizon Communications' Operating Margin % too high?
Verizon Communications' current Operating Margin % of 23.93% is near median its 10-year median of 22.36. Over the past 10 years, this metric has ranged from a low of 20.53 to a high of 24.29. The Telecommunication Services industry median Operating Margin % is 9.73. Verizon Communications' value of 23.93% is 145.9% above this industry median. Based on the distribution chart, Verizon Communications ranks #82 out of 367 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Verizon Communications has a GF Score™ of 49/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Verizon Communications' Operating Margin % compare to TMUS and T?
According to the Telecommunication Services industry distribution chart, Verizon Communications ranks #82 out of 367 companies for Operating Margin %. This places Verizon Communications in the top 22% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 9.73. Verizon Communications' value of 23.93% is 145.9% above this benchmark. Historically, Verizon Communications' own Operating Margin % has ranged from 20.53 to 24.29 over the past decade. While the company's 10-year median is 22.36 vs. the industry median of 9.73, Verizon Communications 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 Telecommunication Services company?
The median Operating Margin % among Telecommunication Services companies is 9.73, based on 367 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. Verizon Communications's current Operating Margin % of 23.93% is 145.9% 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 Verizon Communications and its competitors. For the Telecommunication Services industry, the median Operating Margin % is 9.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Verizon Communications's current Operating Margin % is 23.93%, which is near median its own 10-year median of 22.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Verizon Communications stock overvalued right now?
Based on GuruFocus' analysis, Verizon Communications (CHIX:BACD) is currently considered Fairly Valued. The stock's GF Value™ is €37.01, compared to a current price of €40.70 — trading 10% above its estimated fair value. The current Operating Margin % is 23.93%, which is near median its 10-year median of 22.36 and 145.9% above the Telecommunication Services industry median of 9.73. Verizon Communications' overall GF Score™ is 49/100 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 Verizon Communications (CHIX:BACD), the current Operating Margin % is 23.93% 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 Verizon Communications (CHIX:BACD) Overvalued in 2026?
Based on GuruFocus' analysis, Verizon Communications stock appears to be overvalued.
The current stock price of €40.70 is trading 10% above its estimated GF Value™ of €37.01.
GuruFocus considers Verizon Communications to be Fairly Valued.
Key valuation signals for CHIX:BACD:
Operating Margin %: 23.93% (near median its 10-year median of 22.36)
GF Value™: €37.01 vs. price of €40.70 (10% above fair value)
Industry Position: 145.9% above the Telecommunication Services median (#82 of 367)
No single metric tells the full story. See the CHIX:BACD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wireless services account for 75% of Verizon Communications' total service revenue and nearly all of its operating income. The firm serves about 94 million postpaid and 20 million prepaid phone customers via its nationwide network, making it the largest US wireless carrier. Fixed-line telecom operations include local networks in the Northeast that reach about 30 million homes and businesses, including about 20 million served by the Fios fiber-optic network. Verizon closed its acquisition of Frontier Communications in January, adding networks that reach another 15 million locations, including 9 million with fiber. These networks serve about 11 million broadband customers. Verizon also provides telecom services nationwide to enterprise customers, using a mix of its own and other networks.
49GF Score
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