# Gross, operating, and net margin

Informational only - not investment advice.

Book: [Reading Financial Data - Step by Step](/guide/)
Chapter: [Reading a company's financials](/guide/company-financials/)
As of: 2025-10-31

Margins turn income-statement dollars into percentages of revenue.

## Concept

A margin is a numerator divided by revenue. The numerator changes the question you are asking.

## Worked Example: Compute three Apple margins

1. Start with AAPL revenue: $416.2 billion for fiscal 2025.
2. Gross margin = gross profit / revenue = $195.2 billion / $416.2 billion = 46.91%.
3. Operating margin = operating income / revenue = $133.1 billion / $416.2 billion = 31.97%.
4. Net margin = net income / revenue = $112.0 billion / $416.2 billion = 26.92%.

## See it live

- [AAPL company page](/company/AAPL/)

## Sources

- [AAPL SEC companyfacts](https://data.sec.gov/api/xbrl/companyfacts/CIK0000320193.json)
- [AAPL latest 10-K source](https://www.sec.gov/Archives/edgar/data/320193/000032019325000079/aapl-20250927.htm)