The S&P 500 is on pace to post record second-quarter profits, with FactSet projecting a blended net profit margin of 15.7%, but that headline figure is heavily skewed by Alphabet's 93.6% margin, which was inflated by unrealized gains on its SpaceX stake. Excluding Alphabet, the blended margin drops to roughly 14.4%. Overall, 86% of reporting companies have beaten earnings-per-share estimates, and the index is on track for its tenth straight quarter of year-over-year earnings growth. However, the top 10 companies now generate 34% of all S&P 500 profits, roughly double their share from the mid-1990s, underscoring how a handful of mega-cap AI leaders are lifting the averages.
Broadcom Inc
Alphabet Inc Class C
Microsoft Corporation
NVIDIA Corporation
Micron Technology Inc