S&P 500 Net Profit Margin Hits 15.7% in Q2 2026, Driven Largely by Alphabet's $112.1B Earnings

According to FactSet, the S&P 500's blended net profit margin reached 15.7% in Q2 2026, the highest level recorded since 2009, driven significantly by Alphabet's exceptional quarter. Alphabet reported net income of $112.1 billion, up 298% year-over-year, though roughly $77.1 billion of that came from post-tax unrealized gains on its SpaceX stake rather than operational earnings.

Excluding Alphabet's contribution, S&P 500 earnings growth for Q2 2026 would drop to 25.9% from the headline 37.9%, underscoring the index's concentration risk.