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OGeneralUpdated 2 Nov 2026

Operating margin

Percentage of revenue that remains as operating income after operating expenses.

Definition

Operating margin provides insight into the financial health of a company's core operations. It compares its operating income to its revenue, an important metric you should keep track of.

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In the room

How the word shows up in a real conversation.

A mentor asks, “What is your Operating margin?” The useful answer is concrete: percentage of revenue that remains as operating income after operating expenses. A slide title is not an answer.

Common mistake

Using Operating margin as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.

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