# Net margin

> Net income as a share of revenue, for the same period.

Updated Oct 17, 2026.

Net margin is net income as a percentage of revenue: how much of each dollar of sales ends up as profit for shareholders after every cost, interest and tax.

## Formula

```
net margin = net income / revenue
```

Both figures are for the same period, as reported. Net income here is the figure attributable to the company's shareholders. A trailing twelve-month margin divides [TTM](/glossary/ttm) net income by TTM revenue.

## Reading it

Net margin is the noisiest of the three margins, because net income carries tax effects, investment gains and losses, and one-off items. A jump in net margin with a flat operating margin usually comes from below the operating line. Check the income statement before drawing a conclusion.

## When it says "not reported"

- [Net income](/glossary/net-income) is not reported for the period.
- Revenue is not reported, or is zero.

## Related terms

- [Net income](/glossary/net-income.md)
- [Revenue](/glossary/revenue.md)
- [Operating margin](/glossary/operating-margin.md)
- [Gross margin](/glossary/gross-margin.md)
- [TTM](/glossary/ttm.md)

All terms: [/glossary.md](/glossary.md)