Stock Analysis on Net
Stock Analysis on Net

Alphabet Inc. (NASDAQ:GOOG)

$24.99

Operating Profit Margin
since 2005

Microsoft Excel

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Calculation

Alphabet Inc., operating profit margin, long-term trends, calculation

Microsoft Excel
Operating profit margin = 100 × Income from operations1 ÷ Revenues1
Dec 31, 2025 = 100 × ÷
Dec 31, 2024 = 100 × ÷
Dec 31, 2023 = 100 × ÷
Dec 31, 2022 = 100 × ÷
Dec 31, 2021 = 100 × ÷
Dec 31, 2020 = 100 × ÷
Dec 31, 2019 = 100 × ÷
Dec 31, 2018 = 100 × ÷
Dec 31, 2017 = 100 × ÷
Dec 31, 2016 = 100 × ÷
Dec 31, 2015 = 100 × ÷
Dec 31, 2014 = 100 × ÷
Dec 31, 2013 = 100 × ÷
Dec 31, 2012 = 100 × ÷
Dec 31, 2011 = 100 × ÷
Dec 31, 2010 = 100 × ÷
Dec 31, 2009 = 100 × ÷
Dec 31, 2008 = 100 × ÷
Dec 31, 2007 = 100 × ÷
Dec 31, 2006 = 100 × ÷
Dec 31, 2005 = 100 × ÷

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in millions

The operating profit margin exhibited considerable fluctuation between 2005 and 2025. Initially, the margin demonstrated a period of relative stability, followed by a period of decline, and then a resurgence, ultimately reaching a peak in the latter years of the observed timeframe.

Initial Period (2005-2007)
From 2005 to 2007, the operating profit margin remained relatively high, beginning at 32.86% and peaking at 33.48% in 2006 before decreasing to 30.64% in 2007. This suggests a consistently profitable core business during this period, with a slight dip in profitability towards the end.
Period of Decline (2008-2013)
The years 2008 through 2013 witnessed a general downward trend in the operating profit margin. Starting at 30.43% in 2008, it steadily declined, reaching a low of 23.34% in 2013. This period may reflect increased competition, rising operating costs, or a shift in revenue mix towards lower-margin products or services.
Stabilization and Growth (2014-2019)
From 2014 to 2019, the operating profit margin experienced a period of stabilization and moderate growth. It rose from 24.99% in 2014 to 21.15% in 2019, with some year-to-year volatility. This indicates a recovery in profitability and potentially successful cost management initiatives.
Significant Increase (2020-2021)
A substantial increase in the operating profit margin was observed between 2020 and 2021, moving from 22.59% to 30.55%. This significant jump suggests a period of exceptional profitability, potentially driven by increased demand for products or services, improved operational efficiency, or favorable market conditions. Income from operations increased significantly during this period, more than offsetting revenue growth.
Recent Performance (2022-2025)
The operating profit margin experienced a slight decrease in 2022 to 26.46%, followed by increases in 2023 and 2024, reaching 32.11% and 32.03% respectively. This indicates continued strong profitability, with margins remaining at historically high levels. The margin remained stable between 2024 and 2025.

Overall, the operating profit margin demonstrates a cyclical pattern with periods of decline, stabilization, and significant growth. The recent trend indicates a return to strong profitability, with the margin reaching levels comparable to those observed in the earlier years of the analyzed period.

Comparison to Competitors

Alphabet Inc., operating profit margin, long-term trends, comparison to competitors

Microsoft Excel
Alphabet Inc. Comcast Corp. Meta Platforms Inc. Netflix Inc. Trade Desk Inc.
Dec 31, 2025
Dec 31, 2024
Dec 31, 2023
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Dec 31, 2021
Dec 31, 2020
Dec 31, 2019
Dec 31, 2018
Dec 31, 2017
Dec 31, 2016
Dec 31, 2015
Dec 31, 2014
Dec 31, 2013
Dec 31, 2012
Dec 31, 2011
Dec 31, 2010
Dec 31, 2009
Dec 31, 2008
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Dec 31, 2006
Dec 31, 2005

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).