S&P 500 Q2 2026 Net Margin Hits Record 16.9%; Alphabet, Amazon Lead Gains
S&P 500 constituent companies' net profit margin reached 16.9% in the second quarter of 2026, up from 14.8% in the first quarter and 12.9% a year earlier, and above the five-year average of 12.4%. If confirmed, the figure would be the highest since records began in 2009. Alphabet and Amazon were the largest contributors, with operating margins of 34% and 13.7%, respectively. Excluding both companies, the aggregate margin still reached 15%, also a record high.
S&P 500 constituent companies' net profit margin rose to 16.9% in the second quarter of 2026, up from 14.8% in the first quarter and 12.9% in the year-ago period, and well above the five-year average of 12.4%. The reading is based on a combined calculation of actual and estimated results for all constituent companies. If confirmed, the figure would be the highest since records began in 2009. The net profit margin measures the proportion of revenue a company retains after paying all expenses.
Alphabet and Amazon were the largest contributors to the quarterly margin improvement. Alphabet's second-quarter operating margin reached 34%, up from 32% a year earlier, with other income of $98 billion primarily driven by unrealized gains on equity securities. Amazon reported net other income of $53.4 billion, largely related to its investment in Anthropic, while its operating margin rose to 13.7% from 11.4% in the year-ago period. Even excluding both companies, the aggregate net margin for S&P 500 constituents still reached 15%, also a record high since 2009.
At the sector level, margin improvement was broad-based, with 8 of the 11 sectors covered by the index posting higher net margins than a year earlier. The technology, communication services, consumer discretionary, and energy sectors recorded the largest gains.