A golden age of corporate profits
Summary
U.S. companies are making record profits, driven especially by big tech firms benefiting from advances in artificial intelligence (AI). While corporate earnings and profit margins have grown strongly, workers are receiving a smaller share of the country’s income, which may affect public attitudes about the economy.Key Facts
- Corporate profits in the U.S. reached record levels in the second quarter of 2025.
- The S&P 500 companies are expected to report about 29% growth in earnings per share in the third quarter of 2025.
- AI-related companies, such as Nvidia and Micron Technology, are responsible for a large part of the earnings increase.
- Some companies reported huge gains from the rising value of their tech investments; Amazon estimated a $50 billion profit boost from its AI stake.
- Corporate profit margins — the difference between earnings and costs — are among the highest ever recorded.
- The share of national income going to workers in wages and benefits has dropped to near-record lows.
- This decrease in wages compared to profits may be why many Americans feel uncertain about the economy despite corporate success.
- Stock market benefits from these profits, but the growth is concentrated in a few big companies.
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