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ExlService HoldingsEXLS +2.60%86 Operating Margin % is 14.68% as of Jun. 2026, which is 17% above its 10-year median of 12.55. GuruFocus rates EXLS with a GF Score™ of 86/100 and a GF Value™ of $48.11 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,826 Software companies, ExlService Holdings ranks better than 80.29% on this metric.
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.
ExlService Holdings Operating Margin % Related Terms
ExlService Holdings Operating Margin % Historical Data
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The historical data trend for ExlService Holdings'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.
EXLS vs EPAM, CSQR, SAIC: Operating Margin % Comparison
For the Information Technology Services subindustry, ExlService Holdings'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.
ExlService Holdings Operating Margin % vs Software Industry
For the Software industry and Technology sector, ExlService Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where ExlService Holdings'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.
ExlService Holdings'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.
ExlService Holdings (EXLS) has a Operating Margin % of 14.68% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on ExlService Holdings and its competitors. This is 17% above median its historical median of 12.55. Over the past decade, ExlService Holdings' Operating Margin % has ranged from 7.91 to 15.03. According to the industry distribution chart, ExlService Holdings ranks #557 out of 2826 companies in the Software industry, placing it in the top 19.7%.
Is ExlService Holdings' Operating Margin % too high?
ExlService Holdings' current Operating Margin % of 14.68% is 17% above median its 10-year median of 12.55. Over the past 10 years, this metric has ranged from a low of 7.91 to a high of 15.03. The Software industry median Operating Margin % is 3.96. ExlService Holdings' value of 14.68% is 271.2% above this industry median. Based on the distribution chart, ExlService Holdings ranks #557 out of 2826 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, ExlService Holdings has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ExlService Holdings' Operating Margin % compare to EPAM and CSQR?
According to the Software industry distribution chart, ExlService Holdings ranks #557 out of 2826 companies for Operating Margin %. This places ExlService Holdings in the top 20% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.96. ExlService Holdings' value of 14.68% is 271.2% above this benchmark. Historically, ExlService Holdings' own Operating Margin % has ranged from 7.91 to 15.03 over the past decade. While the company's 10-year median is 12.55 vs. the industry median of 3.96, ExlService Holdings 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 3.96, based on 2,826 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. ExlService Holdings's current Operating Margin % of 14.68% is 271.2% 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 ExlService Holdings and its competitors. For the Software industry, the median Operating Margin % is 3.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ExlService Holdings's current Operating Margin % is 14.68%, which is 17% above median its own 10-year median of 12.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ExlService Holdings stock overvalued right now?
Based on GuruFocus' analysis, ExlService Holdings (EXLS) is currently considered Modestly Undervalued. The stock's GF Value™ is $48.11, compared to a current price of $35.47 — trading 26.3% below its estimated fair value. The current Operating Margin % is 14.68%, which is 17% above median its 10-year median of 12.55 and 271.2% above the Software industry median of 3.96. ExlService Holdings' overall GF Score™ is 86/100 with 2 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 ExlService Holdings (EXLS), the current Operating Margin % is 14.68% as of Jun. 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 ExlService Holdings (EXLS) Overvalued in 2026?
Based on GuruFocus' analysis, ExlService Holdings stock appears to be undervalued.
The current stock price of $35.47 is trading 26.3% below its estimated GF Value™ of $48.11.
GuruFocus considers ExlService Holdings to be Modestly Undervalued.
Key valuation signals for EXLS:
Operating Margin %: 14.68% (17% above median its 10-year median of 12.55)
GF Value™: $48.11 vs. price of $35.47 (26.3% below fair value)
Industry Position: 271.2% above the Software median (#557 of 2826)
No single metric tells the full story. See the EXLS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ExlService Holdings Inc. is a data analytics and digital operations company that provides data and AI-led solutions and technology-enabled services to clients across industries. The company has four reportable segments. The Insurance segment provides services such as claims management, underwriting support, and analytics solutions. The Healthcare and Life Sciences segment offers data-driven solutions and services to healthcare payers, providers, and life sciences organizations. The Banking, Capital Markets and Diversified Industries segment delivers solutions across financial services and other industries. The International Growth Markets segment focuses on providing data, AI, and digital operations services to clients outside North America.
86GF Score
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