S&P 500 Net Profit Margin Set to Hit 15.7% in Q2 2026, a 17‑Year High

The S&P 500’s aggregate net margin is projected to reach 15.7% in Q2 2026, which would be its highest reading in data going back to 2009. If confirmed, it would extend the streak of quarterly improvements to ten.

With 27% of index constituents having reported, early results are strong. Alphabet (GOOGL) is the single largest contributor to the margin expansion, following a significant earnings beat.

Broad beats continue: 86% of reporting companies have exceeded EPS expectations, and 80% have topped revenue forecasts. AI-related growth is cited as a key driver of the historic earnings momentum.