Data compression in caches has been studied from the performance and energy consumption points of view. In this paper, we study the possible benefits of operating with compressed operands. Operating in the compressed domain (i.e., executing instructions with compressed operands) as far as possible can offer several advantages. First, since it is less reliant on decompression, it may be possible to employ a fancier compression/decompression strategy, without the associated performance/power penalties, that can offer higher compression rates to further boost cache locality. Second, the transfers between cache and datapath can use fewer bits (to transmit codes instead of data values) and provide dynamic energy savings in the corresponding bus. In this paper, we demonstrate that there are cases where operations can be executed in the compressed domain, which can lead to performance improvements and energy savings. In particular, we show that by operating in the compressed domain, the effectiveness of prior techniques can be further improved.