S&P 500 Q2 Net Profit Margin Hits 15.7%, Highest Since 2009, as Big Tech Drives 38% YoY Earnings Growth

According to The Kobeissi Letter, the S&P 500's net profit margin hit 15.7% in Q2 2026, the highest level since 2009, as Big Tech stocks drove a historic earnings rally. The benchmark index is expected to post 38% year-on-year earnings growth in the second quarter, the highest rate since Q3 2021, according to Chief Market Strategist Charlie Bilello of Creative Planning.

Alphabet Inc. was the single largest margin contributor after significantly beating earnings estimates, reporting Q2 revenue of $119.8 billion, up 24% year-on-year, with earnings per share of $9.11 far exceeding analyst expectations of $2.91. Overall, 86% of reporting S&P 500 firms have beaten earnings-per-share estimates, while 80% have exceeded revenue expectations.