The S&P 500 blended net profit margin reached 15.7% in Q2 2026, a record high according to FactSet, surpassing the previous peak of 14.8% set just one quarter earlier. Eighty-six percent of companies in the index beat their earnings per share estimates, marking the 10th consecutive quarter of earnings growth. Alphabet reported $112 billion in quarterly net income, with roughly $77 billion coming from unrealized gains on investments including its stake in SpaceX. Stripping Alphabet out entirely would drop the S&P 500 margin to around 14.4%, highlighting how one company can move the needle for an index of 500. Analysts are projecting margins of approximately 14.6% for the back half of 2026.
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