S&P 500 companies are keeping more profit from every dollar in sales than ever before, with the blended net profit margin running at 16.9% for the second quarter, according to FactSet data. That is up from 14.8% in the first quarter and 12.9% a year ago, and well above the five-year average of 12.4%. If the figure holds, it would be the highest net profit margin since FactSet began tracking the metric in 2009. Alphabet and Amazon are the biggest contributors, but even excluding them, the margin is a record 15%. Eight of the 11 S&P 500 sectors are reporting higher margins than a year ago, led by technology, communication services, consumer discretionary and energy.
Amazon.com IncAlphabet and Amazon are the biggest contributors to record-high S&P 500 profit margins, indicating strong profitability.
Alphabet Inc Class CAlphabet and Amazon are the biggest contributors to record-high S&P 500 profit margins, indicating strong profitability.
