outperform

Outperform is a verb meaning to perform better than someone or something else. It is used across competitive contexts such as finance, business, sports, and technology to describe superior results, efficiency, or achievement relative to a reference standard or peer group. The term can apply to individuals, teams, companies, funds, or devices.

In finance and investing, outperform refers to returns that exceed a benchmark or index. Common phrasing includes “the fund outperformed the market” or “the stock outperformed its peers.” Financial reporting distinguishes outperformance from underperformance, and the magnitude is usually expressed as a percentage-point difference or an annualized excess return.

The word is formed from the prefix out- attached to perform. The noun form is outperformance; the present participle is outperforming, and a person who frequently outperforms may be described as an outperformer in some contexts, though that usage is less common.

See also: outperformance, benchmarking, performance measurement, market benchmark, relative return.