S&P 500 Aggregate Net Profit Margin (TTM)

Live value temporarily unavailable.

Source: Company filings (aggregated)

Data updated daily

What it measures

The S&P 500 net margin measures aggregate net income as a percentage of aggregate revenue for index constituents on a trailing-twelve-month basis. It is the bottom-line profitability metric: after deducting COGS, operating expenses, interest, and taxes. A net margin of 12% means the index retains $12 of after-tax profit per $100 of revenue.

Why it matters

Net margin is the most comprehensive profitability gauge because it captures every income statement cost — operating, financial, and tax. Its movements reflect the combined effect of pricing power, cost structure, leverage, and effective tax rates. At index level, net margin expansion has been a primary driver of S&P 500 earnings growth over the past two decades; if margins mean-revert toward long-run averages, earnings growth will require genuine revenue acceleration to sustain current valuation multiples. Net margin is highly sensitive to one-time items and tax law changes, so multi-year trends are more informative than single-period readings.

How it is calculated

Net Margin (TTM) = Σ TTM Net Income ÷ Σ TTM Revenue × 100

LENSE computes the S&P 500 net margin as the ratio of aggregate TTM net income to aggregate TTM revenue — not a simple average of per-company margins. Net income and revenue per constituent are sourced from as-reported quarterly income statements; TTM figures are constructed by summing the four most recently reported quarters. Constituents with zero or negative revenue are excluded. Index constituency is resolved point-in-time via the S&P 500 point-in-time index constituency.

Recent (monthly)

Recent data unavailable.

Data source: Company filings (aggregated). Computed and published by LENSE Analytics.