S&P 500 companies have achieved a record-high blended net profit margin of 16.9% in the second quarter of 2024, according to FactSet data. This figure significantly exceeds the five-year average of 12.4% and marks the highest level since FactSet began tracking this metric in 2009. Alphabet and Amazon are the biggest contributors to this performance, with operating margins of 34% and 13.7% respectively. Even excluding these two mega caps, the S&P 500 net profit margin stands at 15%, also a record high. Eight of the eleven S&P 500 sectors are reporting higher margins compared to a year ago.
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