§ Margins and profitability
Profit margin
Glossary version 2026-07-12.v1 · reviewed July 12, 2026
The percentage of revenue remaining as profit at a specified level, such as gross, operating, pretax, or net income. The exact profit definition must always be stated.
Profit margin divides a defined profit measure by revenue. Gross margin reflects product economics, operating margin includes operating expenses, and net margin includes interest, taxes, and non-operating items. Reports name the specific margin, compare it over consistent periods, and explain whether changes come from price, mix, cost, scale, or accounting items.