Margin trends

Corporate profitability for publicly traded companies has reached record levels. Operating profit margins stood at 15% over the 12 months through the end of March 2026, supported by three main forces. First, equity indices have become more concentrated in higher-margin sectors, particularly technology and communication services, where profitability has also continued to improve. Second, corporate pricing power has proved more resilient than expected. Third, companies have captured efficiency gains through digitalization and leaner operating structures. The outlook remains constructive, with analysts expecting further margin expansion. However, forecasts should be treated with some caution: expected margins are usually higher than those ultimately realized, with only a few exceptions, such as the post-pandemic rebound in 2021.

Source: Bloomberg, June 2026.