Talen EnergyTLN -1.46%33 Operating Margin % is 29.33% as of Mar. 2026, which is 268% above its 10-year median of 7.96. GuruFocus rates TLN with a GF Score™ of 33/100. The stock has 8 warning signs investors should review. Among 417 Utilities - Independent Power Producers companies, Talen Energy ranks worse than 55.16% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Talen Energy's Operating Income for the
three
months ended in Mar. 2026 was $364 Mil. Talen Energy's Revenue for the
three
months ended in Mar. 2026 was $1,241 Mil. Therefore, Talen Energy's Operating Margin % for the quarter that ended in Mar. 2026 was 29.33%.
The historical rank and industry rank for Talen Energy's Operating Margin % or its related term are showing as below:
TLN'
s Operating Margin % Range Over the Past 10 Years
Min: -25.13 Med: 7.96 Max: 19.29
Current: 9.39
Talen Energy's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Talen Energy's Operating Income for the
three
months ended in Mar. 2026 was $364 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $304 Mil.
Talen Energy (NAS:TLN) 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.
Talen Energy Operating Margin % Related Terms
Talen Energy Operating Margin % Historical Data
* Premium members only.
The historical data trend for Talen Energy'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.
TLN vs OKLO, NRG, KEN: Operating Margin % Comparison
For the Utilities - Independent Power Producers subindustry, Talen Energy'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.
Talen Energy Operating Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Talen Energy's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Talen Energy'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.
Talen Energy'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.
Talen Energy (TLN) has a Operating Margin % of 29.33% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Talen Energy and its competitors. This is 268% above median its historical median of 7.96. According to the industry distribution chart, Talen Energy ranks #230 out of 417 companies in the Utilities - Independent Power Producers industry, placing it in the top 55.2%.
Is Talen Energy's Operating Margin % too high?
Talen Energy's current Operating Margin % of 29.33% is 268% above median its 10-year median of 7.96. The Utilities - Independent Power Producers industry median Operating Margin % is 13.27. Talen Energy's value of 29.33% is 121% above this industry median. Based on the distribution chart, Talen Energy ranks #230 out of 417 companies in the Utilities - Independent Power Producers industry, which is below the industry midpoint. Overall, Talen Energy has a GF Score™ of 33/100, reflecting its overall financial health beyond just this single metric.
How does Talen Energy's Operating Margin % compare to OKLO and NRG?
According to the Utilities - Independent Power Producers industry distribution chart, Talen Energy ranks #230 out of 417 companies for Operating Margin %. This places Talen Energy in the lower half of its industry. The industry median Operating Margin % is 13.27. Talen Energy's value of 29.33% is 121% above this benchmark. While the company's 10-year median is 7.96 vs. the industry median of 13.27, Talen Energy 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 an Utilities - Independent Power Producers company?
The median Operating Margin % among Utilities - Independent Power Producers companies is 13.27, based on 417 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. Talen Energy's current Operating Margin % of 29.33% is 121% 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 Talen Energy and its competitors. For the Utilities - Independent Power Producers industry, the median Operating Margin % is 13.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Talen Energy's current Operating Margin % is 29.33%, which is 268% above median its own 10-year median of 7.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Talen Energy stock overvalued right now?
Talen Energy (TLN) has a current Operating Margin % of 29.33%. The current Operating Margin % is 29.33%, which is 268% above median its 10-year median of 7.96 and 121% above the Utilities - Independent Power Producers industry median of 13.27. Talen Energy's overall GF Score™ is 33/100 with 8 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 Talen Energy (TLN), the current Operating Margin % is 29.33% 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.
Talen Energy Corp is an independent power producer and energy infrastructure company based in the United States. It owns and operates several gigawatts of power infrastructure in the United States, including 2.2GW of nuclear power and a dispatchable fossil fleet. The company produces and sells electricity, capacity, and ancillary services into wholesale U.S. power markets, with its generation fleet principally located in the Mid-Atlantic, Ohio, and Montana. Talen's operating segments are: PJM and Others. The PJM segment, which generates maximum revenue, is engaged in electricity generation, marketing activities, and commodity risk and fuel management within the PJM market and is comprised of Susquehanna and Talen's natural gas and coal generation facilities in PJM.
33GF Score
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