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Alphabet Inc. GOOG Operating margin

Operating margin at other companies

Microsoft logo
MicrosoftMSFT
46.8%+1.6pp
Amazon logo
AmazonAMZN
11.5%+0.5pp
Apple logo
AppleAAPL
32.6%+0.8pp
Snowflake logo
SnowflakeSNOW
-26.1%-6.8pp
DigitalOcean logo
DigitalOceanDOCN
16.4%+1.9pp

Other financials

Income statement

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Revenue$109.90B+21.8%
Gross profit$68.6B+27.4%
Operating income$39.7B+29.7%
Net income$62.6B+81.2%
EPS (diluted)$5.11+81.9%

Balance sheet

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Cash & equivalents$38.1B+63.6%
Total debt$97.9B+456%
Total equity$478.75B+38.7%
Total assets$703.92B+48.1%

Cash flow

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Operating cash flow$45.8B+26.7%
CapEx$35.7B+107%
Free cash flow$10.1B-46.6%

Valuation

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Market cap$4.48T+82.2%
Enterprise value$4.54T+85.9%
P/E28×+5.8×
P/S10.6×+3.8×

Profitability

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Gross margin60.4%+1.8pp
Net margin37.9%+7.1pp

Returns & leverage

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Return on equity38.9%+4.1pp
Debt / equity0.2×+0.2×
Current ratio1.9×+0.2×

Where this comes from

Calculated from Alphabet Inc.’s reported figures.

Based on trailing twelve months.

The official record: Alphabet Inc.’s 10-Q, filed April 30, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Alphabet Inc.'s operating margin?
Alphabet Inc. (GOOG) reported operating margin of 32.7% in Q1 2026.
How has Alphabet Inc.'s operating margin changed year-over-year?
Alphabet Inc.'s operating margin increased by 0.1% year-over-year, from 32.7% to 32.7%.
What is the long-term trend for Alphabet Inc.'s operating margin?
Over 4 years (2021 to 2025), Alphabet Inc.'s operating margin has grown at a 3.1% compound annual growth rate (CAGR), from 114.6% to 129.6%.
What does operating margin mean?
The profit left from core operations for every dollar of sales, before interest and taxes.
How do you interpret operating margin?
Expanding operating margin shows operating leverage — revenue growing faster than the cost base. Compression points to rising overhead, pricing pressure, or investment ahead of revenue.
How does operating margin compare across companies?
Strong cross-company signal within a sector. Capital-light businesses sustain higher operating margins than capital-intensive ones.