SanofiSTU:SNW +0.95%87 Operating Margin % is 21.38% as of Dec. 2025, which is 3% above its 10-year median of 20.71. GuruFocus rates STU:SNW with a GF Score™ of 87/100 and a GF Value™ of €107.22 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 955 Drug Manufacturers companies, Sanofi ranks better than 82.72% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Sanofi's Operating Income for the
six
months ended in Dec. 2025 was €5,424 Mil. Sanofi's Revenue for the
six
months ended in Dec. 2025 was €25,375 Mil. Therefore, Sanofi's Operating Margin % for the quarter that ended in Dec. 2025 was 21.38%.
Warning Sign:
Sanofi SA operating margin has been in a 5-year decline. The average rate of decline per year is -2.4%.
The historical rank and industry rank for Sanofi's Operating Margin % or its related term are showing as below:
STU:SNW'
s Operating Margin % Range Over the Past 10 Years
Min: 17.53 Med: 20.71 Max: 26.94
Current: 20.54
STU:SNW's Operating Margin % is ranked better than 82.72% of 955
companies
in the Drug Manufacturers industry
Industry Median: 7.45
vs STU:SNW: 20.54
Sanofi's 5-Year Average Operating Margin % Growth Rate was -2.40% per year.
Sanofi's Operating Income for the
six
months ended in Dec. 2025 was €5,424 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was €9,597 Mil.
Sanofi (STU:SNW) 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.
Sanofi Operating Margin % Related Terms
Sanofi Operating Margin % Historical Data
* Premium members only.
The historical data trend for Sanofi'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.
STU:SNW vs LLY, JNJ, ABBV: Operating Margin % Comparison
For the Drug Manufacturers - General subindustry, Sanofi'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.
Sanofi Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Sanofi's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sanofi'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.
Sanofi'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.
Sanofi (STU:SNW) has a Operating Margin % of 21.38% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Sanofi and its competitors. This is near median its historical median of 20.71. Over the past decade, Sanofi's Operating Margin % has ranged from 17.53 to 26.94. According to the industry distribution chart, Sanofi ranks #165 out of 955 companies in the Drug Manufacturers industry, placing it in the top 17.3%.
Is Sanofi's Operating Margin % too high?
Sanofi's current Operating Margin % of 21.38% is near median its 10-year median of 20.71. Over the past 10 years, this metric has ranged from a low of 17.53 to a high of 26.94. The Drug Manufacturers industry median Operating Margin % is 7.45. Sanofi's value of 21.38% is 187% above this industry median. Based on the distribution chart, Sanofi ranks #165 out of 955 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Sanofi has a GF Score™ of 87/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sanofi's Operating Margin % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Sanofi ranks #165 out of 955 companies for Operating Margin %. This places Sanofi in the top 17% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.45. Sanofi's value of 21.38% is 187% above this benchmark. Historically, Sanofi's own Operating Margin % has ranged from 17.53 to 26.94 over the past decade. While the company's 10-year median is 20.71 vs. the industry median of 7.45, Sanofi 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. Sanofi's current Operating Margin % of 21.38% is 187% 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 Sanofi 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. Sanofi's current Operating Margin % is 21.38%, which is near median its own 10-year median of 20.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sanofi stock overvalued right now?
Based on GuruFocus' analysis, Sanofi (STU:SNW) is currently considered Possible Value Trap. The stock's GF Value™ is €107.22, compared to a current price of €73.65 — trading 31.3% below its estimated fair value. The current Operating Margin % is 21.38%, which is near median its 10-year median of 20.71 and 187% above the Drug Manufacturers industry median of 7.45. Sanofi's overall GF Score™ is 87/100 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 Sanofi (STU:SNW), the current Operating Margin % is 21.38% as of Dec. 2025. 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 Sanofi (STU:SNW) Overvalued in 2026?
Based on GuruFocus' analysis, Sanofi stock appears to be undervalued.
The current stock price of €73.65 is trading 31.3% below its estimated GF Value™ of €107.22.
GuruFocus considers Sanofi to be Possible Value Trap.
Key valuation signals for STU:SNW:
Operating Margin %: 21.38% (near median its 10-year median of 20.71)
GF Value™: €107.22 vs. price of €73.65 (31.3% below fair value)
Industry Position: 187% above the Drug Manufacturers median (#165 of 955)
No single metric tells the full story. See the STU:SNW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sanofi develops and markets drugs with a concentration in immunology, vaccines, and rare diseases. Although the company offers a diverse array of drugs, its highest revenue generator, Dupixent, accounts for over 30% of total sales. Profits for this immunology blockbuster drug are shared with Regeneron. About 45% of total revenue comes from the United States, 20% from Europe, and 6% from China.
87GF Score
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