S&P 500 Companies with Record Net Margin Since 2009
Published on April 30, 2026
Overview
According to FactSet data, the blended net profit margin for S&P 500 companies in Q1 2026 is reported at 13.4%. This figure marks the highest level since tracking began in 2009, surpassing the previous record of 13.2% in Q4 2025. Despite concerns regarding rising oil prices, profit margins have shown remarkable resilience.
Sector Performance
In Q1 2026, five out of the eleven sectors in the S&P 500 reported year-over-year margin expansion compared to Q1 2025, while six sectors are performing above their five-year average margins. The following highlights the performance of key sectors:
- Technology: The IT sector leads with margins of 29.1%, up from 25.4% year-over-year, significantly contributing to overall index profitability.
- Communication Services: This sector faced pressure, with margins declining to 14.1% from 16.0% a year ago.
- Energy: Despite higher oil prices, the energy sector reported margins of only 6.6%, which is below its five-year average of 9.6%.
Quarter-over-Quarter Analysis
Quarter-over-quarter improvements in margins were not uniform across sectors. Margins increased in five sectors, with Utilities leading at 15.1%, up from 12.1% in Q4 2025. However, six sectors, particularly Energy and Industrials, saw declines. In the Industrials sector, margins fell to 11.1% from 12.3% year-over-year.
Future Outlook
Looking ahead, Wall Street is optimistic about further improvements in S&P 500 net margins. Consensus forecasts predict margins of 14.1% in Q2, 14.6% in Q3, and 14.6% in Q4 2026. However, these projections may be overly optimistic given the mixed signals regarding US consumer strength.