Two companies can have the same revenue and very different futures, depending on how much they plough back into research. R&D intensity captures that in a single ratio.
The answer first
R&D intensity = research and development expense ÷ revenue, expressed as a percentage. It tells you what share of every sales dollar a company reinvests into developing new products and technology. High intensity is typical of software, chip and drug companies; it is near zero for retailers and commodity producers. It is a measure of reinvestment, not current profitability — heavy R&D can depress today’s margins while building tomorrow’s revenue.
Who spends the most (by intensity)
Using each company’s latest fiscal year from its 10-K:
| Company | R&D expense | Revenue | R&D intensity |
|---|---|---|---|
| Meta Platforms (META) | $57.4B | $201.0B | 28.5% |
| Intel (INTC) | $13.8B | $52.9B | 26.1% |
| Merck (MRK) | $15.8B | $65.0B | 24.3% |
| Oracle (ORCL) | $9.9B | $57.4B | 17.2% |
| Alphabet (GOOGL) | $61.1B | $402.8B | 15.2% |
| Microsoft (MSFT) | $32.5B | $281.7B | 11.5% |
| Apple (AAPL) | $34.5B | $416.2B | 8.3% |
Notice the difference between intensity and absolute spend: Alphabet spends far more dollars on R&D than Intel, but Intel’s R&D is a much larger share of its (smaller) revenue. Both views are useful — see the top R&D spenders and highest R&D intensity rankings.
How to read it
A high R&D intensity is a strategic choice, not automatically good or bad:
- Pharma and chips must spend heavily just to stay in the game; for them, falling R&D can be a warning sign.
- Mature consumer brands like Coca-Cola report little R&D — their competitive edge is brand and distribution.
- A spike in intensity often reflects falling revenue (the denominator) as much as rising spend, so always check both numbers.
Calculate it yourself
The on-site company pages compute R&D intensity automatically for every firm that reports R&D. To do it by hand for any period, use the same formula in the profit-margin calculator (enter R&D as the “profit” figure and revenue as revenue) — the result is the intensity percentage.
Caveats
Companies define and capitalise R&D slightly differently, and some research-heavy firms (like financials) simply never tag the concept, so they’re excluded from R&D rankings here. For background on the figures, see where company financial data comes from.
Figures here are factual data compiled from SEC filings — not investment advice; figures may contain errors or lag the original filing; verify on SEC EDGAR before relying on them.