Non-Financial Corporate Profits vs. 5-Year Average U.S. corporate profits have surged since the COVID-19 pandemic, far outpacing the real economy. Past cycles warn that such imbalances eventually correct when market sentiment shifts. Image: Real Investment Advice
U.S. Corporate Profits as % of Real GDP U.S. corporate profits are running far ahead of real economy growth, reaching the widest gap on record. History shows that such divergences rarely last once markets face reality. Image: Real Investment Advice
S&P 500 Quarterly Net Profit Margin (ex. Financials & Utilities) Corporate America is minting profits like never before, and with margins set to stretch even further into 2026, the bullish narrative remains intact. Image: Goldman Sachs Global Investment Research
U.S. Financial Sector’s Profit vs. Labour Demand With so much of finance built on information processing, the sector may soon stand as the clearest example of how AI can lift earnings without lifting headcount. Image: Deutsche Bank
The Largest Cumulative Losses Before Young/Start-Up Companies Turned a Profit As OpenAI’s revenue rises, the question looms: can it reach profitability by 2029 while spending so heavily to fuel the AI race? Image: Deutsche Bank
U.S. Corporate Profits as Percent of GDP Corporate America’s profit share remains elevated in 2025, a sign that the pandemic-era surge in profitability has proven surprisingly durable. Image: Goldman Sachs Global Investment Research
Cumulative Change in Real S&P 500 and Real Profits Earnings remain solid, especially in tech, but the widening gap between the real S&P 500 index and real corporate profit growth suggests investors may be chasing momentum more than fundamentals. Image: Real Investment Advice
S&P 500 Trailing 4-Quarter Net Profit Margin (Ex. Financials) Over the past 35 years, the S&P 500’s profit margin has climbed from 5% to 12% and has held at high levels in recent years, with forecasts pointing to continued growth in 2026 and 2027. Image: Goldman Sachs Global Investment Research
S&P 500 – U.S. Broad Market Net Forward Profit Margin Elevated profit margins in the U.S. broad market, which continue to show forward-looking expansion, point to underlying economic resilience and do not align with the start of a severe, systemic labor market downturn. Image: TS Lombard
Share of U.S. Corporate Profits from Foreign Markets Foreign markets account for 13% of US corporate profits, while emerging markets contribute 4%. Yet, trade uncertainties and recent tariffs may threaten these contributions moving forward. Image: Goldman Sachs Global Investment Research
After-Tax Nonfinancial Corporate Profits as Share of Gross Value Added While U.S. corporate profits fell in Q1 2025 due to higher costs and economic uncertainty, they remain historically high, reflecting both the strength and the vulnerability of large companies in the current economic climate. Image: Bloomberg