FatpipeFATN -3.39%21 Operating Margin % is 30.24% as of Mar. 2026, which is 47% above its 10-year median of 20.51. GuruFocus rates FATN with a GF Score™ of 21/100. The stock has 2 warning signs investors should review. Among 2,812 Software companies, Fatpipe ranks better than 86.56% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Fatpipe's Operating Income for the
three
months ended in Mar. 2026 was $2.19 Mil. Fatpipe's Revenue for the
three
months ended in Mar. 2026 was $7.23 Mil. Therefore, Fatpipe's Operating Margin % for the quarter that ended in Mar. 2026 was 30.24%.
The historical rank and industry rank for Fatpipe's Operating Margin % or its related term are showing as below:
FATN'
s Operating Margin % Range Over the Past 10 Years
Min: -1.81 Med: 20.51 Max: 31.57
Current: 18.69
FATN's Operating Margin % is ranked better than 86.56% of 2812
companies
in the Software industry
Industry Median: 3.875
vs FATN: 18.69
Fatpipe's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Fatpipe's Operating Income for the
three
months ended in Mar. 2026 was $2.19 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $3.59 Mil.
Fatpipe (NAS:FATN) 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.
Fatpipe Operating Margin % Related Terms
Fatpipe Operating Margin % Historical Data
* Premium members only.
The historical data trend for Fatpipe'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.
FATN vs AISP, REKR, AIFC: Operating Margin % Comparison
For the Software - Infrastructure subindustry, Fatpipe'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.
Fatpipe Operating Margin % vs Software Industry
For the Software industry and Technology sector, Fatpipe's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Fatpipe'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.
Fatpipe's Operating Margin % for the fiscal year that ended in Mar. 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.
Fatpipe (FATN) has a Operating Margin % of 30.24% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Fatpipe and its competitors. This is 47% above median its historical median of 20.51. According to the industry distribution chart, Fatpipe ranks #378 out of 2812 companies in the Software industry, placing it in the top 13.4%.
Is Fatpipe's Operating Margin % too high?
Fatpipe's current Operating Margin % of 30.24% is 47% above median its 10-year median of 20.51. The Software industry median Operating Margin % is 3.88. Fatpipe's value of 30.24% is 680.4% above this industry median. Based on the distribution chart, Fatpipe ranks #378 out of 2812 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Fatpipe has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Fatpipe's Operating Margin % compare to AISP and REKR?
According to the Software industry distribution chart, Fatpipe ranks #378 out of 2812 companies for Operating Margin %. This places Fatpipe in the top 13% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.88. Fatpipe's value of 30.24% is 680.4% above this benchmark. While the company's 10-year median is 20.51 vs. the industry median of 3.88, Fatpipe 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 2,812 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. Fatpipe's current Operating Margin % of 30.24% is 680.4% 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 Fatpipe 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. Fatpipe's current Operating Margin % is 30.24%, which is 47% above median its own 10-year median of 20.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fatpipe stock overvalued right now?
Fatpipe (FATN) has a current Operating Margin % of 30.24%. The current Operating Margin % is 30.24%, which is 47% above median its 10-year median of 20.51 and 680.4% above the Software industry median of 3.88. Fatpipe's overall GF Score™ is 21/100 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 Fatpipe (FATN), the current Operating Margin % is 30.24% 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.
Fatpipe Inc is a pioneer in enterprise-class, application-aware, secure SD-WAN solutions for organizations, including enterprises, communication service providers, security service providers, government organizations, and other middle-market companies. It is engaged in delivering principal enterprise-class networking software technology. The company is dedicated to continually improving the way organizations connect, ensuring their networks are secure, reliable, and supporting their continued success. Its commitment lies in empowering its customers with a seamless and dependable connectivity infrastructure that safeguards their critical data and fosters business continuity. Further, the company's goal is to ensure its customers have unparalleled insights into their network operations.
21GF Score
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