profit margin

American  

noun

1. the percentage that profit constitutes of total sales.

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Etymology

Origin of profit margin

First recorded in 1925–30

Example Sentences

Intel’s guidance for the second quarter was also better than expected, with sales seen growing 11% at the midpoint of its forecast range, and a much improved gross profit margin.

From Barron's • Apr. 23, 2026

Ericsson dropped 0.6% in U.S. trading after the Swedish telecommunications company missed Wall Street’s sales target and reported that its gross profit margin fell over the first quarter.

From Barron's • Apr. 17, 2026

The company also anticipates an underlying operating profit margin in a range of between 3.2% and 3.4%, while it previously expected it to come slightly lower than the 4.7% it booked for fiscal 2025.

From The Wall Street Journal • Apr. 10, 2026

While Unitree’s average selling price was only 168,000 yuan in the first nine months of 2025, its gross margin reached 60% and adjusted profit margin was 37%.

From The Wall Street Journal • Mar. 26, 2026

He could undercut his competitors and increase his profit margin.

From "Atonement" by Ian McEwan