Guardant Health (FRA:5GH) Operating Margin %: -40.23% (As of Mar. 2026)


FRA:5GH Guardant Health Inc FRA:5GH
67 GF Score
Price €122.16
GF Value €52.94
Valuation Significantly Overvalued
! 4 Warning Signs
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What is Guardant Health Operating Margin %?

Guardant Health FRA:5GH +1.63% 67 Operating Margin % is -40.23% as of Mar. 2026. GuruFocus rates FRA:5GH with a GF Score™ of 67/100 and a GF Value™ of €52.94 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 204 Medical Diagnostics & Research companies, Guardant Health ranks worse than 76.96% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Guardant Health's Operating Income for the three months ended in Mar. 2026 was €-105.0 Mil. Guardant Health's Revenue for the three months ended in Mar. 2026 was €260.9 Mil. Therefore, Guardant Health's Operating Margin % for the quarter that ended in Mar. 2026 was -40.23%.

Good Sign:

Guardant Health Inc operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Guardant Health's Operating Margin % or its related term are showing as below:

FRA:5GH' s Operating Margin % Range Over the Past 10 Years
Min: -173.66   Med: -101.34   Max: -38.42
Current: -41.43


FRA:5GH's Operating Margin % is ranked worse than
76.96% of 204 companies
in the Medical Diagnostics & Research industry
Industry Median: -3.195 vs FRA:5GH: -41.43

Guardant Health's 5-Year Average Operating Margin % Growth Rate was 14.50% per year.

Guardant Health's Operating Income for the three months ended in Mar. 2026 was €-105.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €-384.7 Mil.


Guardant Health  (FRA:5GH) 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 Nokia’s 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.


Guardant Health Operating Margin % Related Terms


Guardant Health Operating Margin % Historical Data

* Premium members only.

The historical data trend for Guardant Health'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.

Guardant Health Operating Margin % Chart

Guardant Health Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -110.00 -121.10 -100.14 -60.02 -44.53

Guardant Health Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -54.57 -45.85 -37.33 -42.95 -40.23

FRA:5GH vs LH, DGX, MEDP: Operating Margin % Comparison

For the Diagnostics & Research subindustry, Guardant Health'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.


Guardant Health Operating Margin % vs Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Guardant Health's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Guardant Health's Operating Margin % falls into.


FRA:5GH
67GF Score
Guardant Health Inc FRA:5GH
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Guardant Health Operating Margin % Calculation

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.

Guardant Health's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=-373.41 / 838.646
=-44.53 %

Guardant Health's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=-104.968 / 260.94
=-40.23 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of -40.23% mean?
Guardant Health (FRA:5GH) has a Operating Margin % of -40.23% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Guardant Health and its competitors. According to the industry distribution chart, Guardant Health ranks #157 out of 204 companies in the Medical Diagnostics & Research industry, placing it in the top 77%.
Is Guardant Health's Operating Margin % too high?
Guardant Health's current Operating Margin % is -40.23%. Based on the distribution chart, Guardant Health ranks #157 out of 204 companies in the Medical Diagnostics & Research industry, which is in the bottom quartile relative to peers. Overall, Guardant Health has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Guardant Health's Operating Margin % compare to LH and DGX?
According to the Medical Diagnostics & Research industry distribution chart, Guardant Health ranks #157 out of 204 companies for Operating Margin %. This places Guardant Health in the lower half of its industry. 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 Medical Diagnostics & Research company?
A good Operating Margin % depends on the Medical Diagnostics & Research industry context. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Guardant Health and its competitors. Guardant Health's current Operating Margin % is -40.23%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guardant Health stock overvalued right now?
Based on GuruFocus' analysis, Guardant Health (FRA:5GH) is currently considered Significantly Overvalued. The stock's GF Value™ is €52.94, compared to a current price of €122.16 — trading 130.8% above its estimated fair value. The current Operating Margin % is -40.23%. Guardant Health's overall GF Score™ is 67/100 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 Guardant Health (FRA:5GH), the current Operating Margin % is -40.23% 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 Guardant Health (FRA:5GH) Overvalued in 2026?

Based on GuruFocus' analysis, Guardant Health stock appears to be overvalued. The current stock price of €122.16 is trading 130.8% above its estimated GF Value™ of €52.94. GuruFocus considers Guardant Health to be Significantly Overvalued.

Key valuation signals for FRA:5GH:

  • Operating Margin %: -40.23%
  • GF Value™: €52.94 vs. price of €122.16 (130.8% above fair value)
  • GF Score™: 67/100 with 4 warning signs

No single metric tells the full story. See the FRA:5GH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Guardant Health Business Description

Other Exchanges GH:USA1GH:Italy5GH:Germany
Address 3100 Hanover Street, Palo Alto, CA, USA, 94304
Guardant Health, based in Redwood City, California, is a leader in liquid-based cancer tests for clinical and research use. The company's main franchises are Guardant360 for genomic profiling of tumors, Reveal for molecular residual disease testing, and Shield for colorectal cancer screening. Additionally, Guardant offers research development services such as regulatory approval consultancy and clinical trial referrals.
67GF Score

Get the complete analysis for FRA:5GH

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€122.16
Price
€52.94
GF Value