Amazon.comFRA:AMZ +0.59%95 Operating Margin % is 13.14% as of Mar. 2026, which is 147% above its 10-year median of 5.32. GuruFocus rates FRA:AMZ with a GF Score™ of 95/100 and a GF Value™ of €205.38 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,128 Retail - Cyclical companies, Amazon.com ranks better than 81.74% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Amazon.com's Operating Income for the
three
months ended in Mar. 2026 was €20,632 Mil. Amazon.com's Revenue for the
three
months ended in Mar. 2026 was €157,014 Mil. Therefore, Amazon.com's Operating Margin % for the quarter that ended in Mar. 2026 was 13.14%.
Good Sign:
Amazon.com Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Amazon.com's Operating Margin % or its related term are showing as below:
FRA:AMZ'
s Operating Margin % Range Over the Past 10 Years
Min: 2.31 Med: 5.32 Max: 11.5
Current: 11.5
FRA:AMZ's Operating Margin % is ranked better than 81.74% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 3.905
vs FRA:AMZ: 11.50
Amazon.com's 5-Year Average Operating Margin % Growth Rate was 19.60% per year.
Amazon.com's Operating Income for the
three
months ended in Mar. 2026 was €20,632 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €73,427 Mil.
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.
Amazon.com Operating Margin % Related Terms
Amazon.com Operating Margin % Historical Data
* Premium members only.
The historical data trend for Amazon.com'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.
FRA:AMZ vs BABA, PDD, MELI: Operating Margin % Comparison
For the Internet Retail subindustry, Amazon.com'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.
Amazon.com Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Amazon.com's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Amazon.com'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.
Amazon.com'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.
Amazon.com (FRA:AMZ) has a Operating Margin % of 13.14% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Amazon.com and its competitors. This is 147% above median its historical median of 5.32. Over the past decade, Amazon.com's Operating Margin % has ranged from 2.31 to 11.50. According to the industry distribution chart, Amazon.com ranks #206 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 18.3%.
Is Amazon.com's Operating Margin % too high?
Amazon.com's current Operating Margin % of 13.14% is 147% above median its 10-year median of 5.32. Over the past 10 years, this metric has ranged from a low of 2.31 to a high of 11.50. The Retail - Cyclical industry median Operating Margin % is 3.91. Amazon.com's value of 13.14% is 236.5% above this industry median. Based on the distribution chart, Amazon.com ranks #206 out of 1128 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Amazon.com has a GF Score™ of 95/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Amazon.com's Operating Margin % compare to BABA and PDD?
According to the Retail - Cyclical industry distribution chart, Amazon.com ranks #206 out of 1128 companies for Operating Margin %. This places Amazon.com in the top 18% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.91. Amazon.com's value of 13.14% is 236.5% above this benchmark. Historically, Amazon.com's own Operating Margin % has ranged from 2.31 to 11.50 over the past decade. While the company's 10-year median is 5.32 vs. the industry median of 3.91, Amazon.com 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 Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.91, based on 1,128 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. Amazon.com's current Operating Margin % of 13.14% is 236.5% 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 Amazon.com and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Amazon.com's current Operating Margin % is 13.14%, which is 147% above median its own 10-year median of 5.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Amazon.com stock overvalued right now?
Based on GuruFocus' analysis, Amazon.com (FRA:AMZ) is currently considered Fairly Valued. The stock's GF Value™ is €205.38, compared to a current price of €206.20 — trading 0.4% above its estimated fair value. The current Operating Margin % is 13.14%, which is 147% above median its 10-year median of 5.32 and 236.5% above the Retail - Cyclical industry median of 3.91. Amazon.com's overall GF Score™ is 95/100 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 Amazon.com (FRA:AMZ), the current Operating Margin % is 13.14% 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 Amazon.com (FRA:AMZ) Overvalued in 2026?
Based on GuruFocus' analysis, Amazon.com stock appears to be overvalued.
The current stock price of €206.20 is trading 0.4% above its estimated GF Value™ of €205.38.
GuruFocus considers Amazon.com to be Fairly Valued.
Key valuation signals for FRA:AMZ:
Operating Margin %: 13.14% (147% above median its 10-year median of 5.32)
GF Value™: €205.38 vs. price of €206.20 (0.4% above fair value)
Industry Position: 236.5% above the Retail - Cyclical median (#206 of 1128)
No single metric tells the full story. See the FRA:AMZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Amazon is the leading online retailer and marketplace for third party sellers. Retail related revenue represents approximately 74% of total, followed by Amazon Web Services (17%), and advertising services (9%). International segments constitute 22% of Amazon's total revenue, led by Germany, the United Kingdom, and Japan.
95GF Score
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