NextEra EnergyWBO:NEE +1.01%82 Operating Margin % is 29.12% as of Mar. 2026, which is 7% above its 10-year median of 27.23. GuruFocus rates WBO:NEE with a GF Score™ of 82/100 and a GF Value™ of €69.31 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 499 Utilities - Regulated companies, NextEra Energy ranks better than 82.97% on this metric.
NextEra Energy Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for NextEra Energy's Operating Margin % or its related term are showing as below:
WBO:NEE'
s Operating Margin % Range Over the Past 10 Years
Min: 16.61 Med: 27.23 Max: 34.97
Current: 27.81
WBO:NEE's Operating Margin % is ranked better than 82.97% of 499
companies
in the Utilities - Regulated industry
Industry Median: 14.97
vs WBO:NEE: 27.81
NextEra Energy's 5-Year Average Operating Margin % Growth Rate was 8.00% per year.
NextEra Energy (WBO:NEE) 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.
NextEra Energy Operating Margin % Related Terms
NextEra Energy Operating Margin % Historical Data
* Premium members only.
The historical data trend for NextEra 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.
WBO:NEE vs SO, DUK, AEP: Operating Margin % Comparison
For the Utilities - Regulated Electric subindustry, NextEra 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.
NextEra Energy Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, NextEra Energy's Operating Margin % distribution charts can be found below:
* The bar in red indicates where NextEra 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.
NextEra 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.
NextEra Energy (WBO:NEE) has a Operating Margin % of 29.12% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on NextEra Energy and its competitors. This is near median its historical median of 27.23. Over the past decade, NextEra Energy's Operating Margin % has ranged from 16.61 to 34.97. According to the industry distribution chart, NextEra Energy ranks #85 out of 499 companies in the Utilities - Regulated industry, placing it in the top 17%.
Is NextEra Energy's Operating Margin % too high?
NextEra Energy's current Operating Margin % of 29.12% is near median its 10-year median of 27.23. Over the past 10 years, this metric has ranged from a low of 16.61 to a high of 34.97. The Utilities - Regulated industry median Operating Margin % is 14.97. NextEra Energy's value of 29.12% is 94.5% above this industry median. Based on the distribution chart, NextEra Energy ranks #85 out of 499 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, NextEra Energy has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NextEra Energy's Operating Margin % compare to SO and DUK?
According to the Utilities - Regulated industry distribution chart, NextEra Energy ranks #85 out of 499 companies for Operating Margin %. This places NextEra Energy in the top 17% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 14.97. NextEra Energy's value of 29.12% is 94.5% above this benchmark. Historically, NextEra Energy's own Operating Margin % has ranged from 16.61 to 34.97 over the past decade. While the company's 10-year median is 27.23 vs. the industry median of 14.97, NextEra 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 - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.97, based on 499 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. NextEra Energy's current Operating Margin % of 29.12% is 94.5% 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 NextEra Energy and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NextEra Energy's current Operating Margin % is 29.12%, which is near median its own 10-year median of 27.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NextEra Energy stock overvalued right now?
Based on GuruFocus' analysis, NextEra Energy (WBO:NEE) is currently considered Modestly Overvalued. The stock's GF Value™ is €69.31, compared to a current price of €76.81 — trading 10.8% above its estimated fair value. The current Operating Margin % is 29.12%, which is near median its 10-year median of 27.23 and 94.5% above the Utilities - Regulated industry median of 14.97. NextEra Energy's overall GF Score™ is 82/100 with 10 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 NextEra Energy (WBO:NEE), the current Operating Margin % is 29.12% 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 NextEra Energy (WBO:NEE) Overvalued in 2026?
Based on GuruFocus' analysis, NextEra Energy stock appears to be overvalued.
The current stock price of €76.81 is trading 10.8% above its estimated GF Value™ of €69.31.
GuruFocus considers NextEra Energy to be Modestly Overvalued.
Key valuation signals for WBO:NEE:
Operating Margin %: 29.12% (near median its 10-year median of 27.23)
GF Value™: €69.31 vs. price of €76.81 (10.8% above fair value)
Industry Position: 94.5% above the Utilities - Regulated median (#85 of 499)
No single metric tells the full story. See the WBO:NEE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NextEra Energy's regulated utility, Florida Power & Light, is the largest rate-regulated utility in Florida. The utility distributes power to over 6 million customer accounts in Florida and owns 36 gigawatts of generation. FP&L contributes roughly 70% of NextEra's consolidated operating earnings. NextEra Energy Resources, the renewable energy segment, generates and sells power throughout the United States and Canada with nearly 40 GW of generation capacity, including natural gas, nuclear, wind, and solar.
82GF Score
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