AmgenLTS:0R0T +0.89%92 Operating Margin % is 30.94% as of Mar. 2026, which is 14% below its 10-year median of 36.15. GuruFocus rates LTS:0R0T with a GF Score™ of 92/100 and a GF Value™ of $354.32 (Fairly Valued). The stock has 5 warning signs investors should review. Among 955 Drug Manufacturers companies, Amgen ranks better than 92.77% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Amgen's Operating Income for the
three
months ended in Mar. 2026 was $2,666 Mil. Amgen's Revenue for the
three
months ended in Mar. 2026 was $8,618 Mil. Therefore, Amgen's Operating Margin % for the quarter that ended in Mar. 2026 was 30.94%.
Warning Sign:
Amgen Inc operating margin has been in a 5-year decline. The average rate of decline per year is -8.3%.
The historical rank and industry rank for Amgen's Operating Margin % or its related term are showing as below:
LTS:0R0T'
s Operating Margin % Range Over the Past 10 Years
Min: 21.71 Med: 36.15 Max: 43.65
Current: 28.39
LTS:0R0T's Operating Margin % is ranked better than 92.77% of 955
companies
in the Drug Manufacturers industry
Industry Median: 7.45
vs LTS:0R0T: 28.39
Amgen's 5-Year Average Operating Margin % Growth Rate was -8.30% per year.
Amgen's Operating Income for the
three
months ended in Mar. 2026 was $2,666 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $10,568 Mil.
Amgen (LTS:0R0T) 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.
Amgen Operating Margin % Related Terms
Amgen Operating Margin % Historical Data
* Premium members only.
The historical data trend for Amgen'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.
LTS:0R0T vs GILD, PFE, BMY: Operating Margin % Comparison
For the Drug Manufacturers - General subindustry, Amgen'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.
Amgen Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Amgen's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Amgen'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.
Amgen'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.
Amgen (LTS:0R0T) has a Operating Margin % of 30.94% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Amgen and its competitors. This is 14% below median its historical median of 36.15. Over the past decade, Amgen's Operating Margin % has ranged from 21.71 to 43.65. According to the industry distribution chart, Amgen ranks #69 out of 955 companies in the Drug Manufacturers industry, placing it in the top 7.2%.
Is Amgen's Operating Margin % too high?
Amgen's current Operating Margin % of 30.94% is 14% below median its 10-year median of 36.15. Over the past 10 years, this metric has ranged from a low of 21.71 to a high of 43.65. The Drug Manufacturers industry median Operating Margin % is 7.45. Amgen's value of 30.94% is 315.3% above this industry median. Based on the distribution chart, Amgen ranks #69 out of 955 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Amgen has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Amgen's Operating Margin % compare to GILD and PFE?
According to the Drug Manufacturers industry distribution chart, Amgen ranks #69 out of 955 companies for Operating Margin %. This places Amgen in the top 7% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.45. Amgen's value of 30.94% is 315.3% above this benchmark. Historically, Amgen's own Operating Margin % has ranged from 21.71 to 43.65 over the past decade. While the company's 10-year median is 36.15 vs. the industry median of 7.45, Amgen 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 955 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. Amgen's current Operating Margin % of 30.94% is 315.3% 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 Amgen and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Amgen's current Operating Margin % is 30.94%, which is 14% below median its own 10-year median of 36.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Amgen stock overvalued right now?
Based on GuruFocus' analysis, Amgen (LTS:0R0T) is currently considered Fairly Valued. The stock's GF Value™ is $354.32, compared to a current price of $347.80 — trading 1.8% below its estimated fair value. The current Operating Margin % is 30.94%, which is 14% below median its 10-year median of 36.15 and 315.3% above the Drug Manufacturers industry median of 7.45. Amgen's overall GF Score™ is 92/100 with 5 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 Amgen (LTS:0R0T), the current Operating Margin % is 30.94% 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 Amgen (LTS:0R0T) Overvalued in 2026?
Based on GuruFocus' analysis, Amgen stock appears to be undervalued.
The current stock price of $347.80 is trading 1.8% below its estimated GF Value™ of $354.32.
GuruFocus considers Amgen to be Fairly Valued.
Key valuation signals for LTS:0R0T:
Operating Margin %: 30.94% (14% below median its 10-year median of 36.15)
GF Value™: $354.32 vs. price of $347.80 (1.8% below fair value)
Industry Position: 315.3% above the Drug Manufacturers median (#69 of 955)
No single metric tells the full story. See the LTS:0R0T stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Amgen is a leader in biotechnology-based human therapeutics. Flagship drugs include red blood cell boosters Epogen and Aranesp, immune system boosters Neupogen and Neulasta, and Enbrel and Otezla for inflammatory diseases. Amgen introduced its first cancer therapeutic, Vectibix, in 2006 and markets bone-strengthening drugs Prolia/Xgeva (approved 2010) and Evenity (2019). The acquisition of Onyx Pharmaceuticals bolstered the firm's therapeutic oncology portfolio with Kyprolis. Recent launches include Repatha (cholesterol-lowering), Aimovig (migraine), Lumakras (lung cancer), and Tezspire (asthma). The 2023 Horizon acquisition brought several rare-disease drugs, including thyroid eye disease drug Tepezza. Amgen also has a growing biosimilar portfolio.
92GF Score
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