Where Are The AI Profit Gains?

S&P 500 profit margins remain largely unchanged from Q1 2025, with most sectors reporting modest improvements in net margins. Real Estate and Technology continue to lead the pack, posting profit margins in the 25%–35% range. While many industries are expected to benefit from AI through lower operating costs and increased revenue opportunities, those gains have yet to meaningfully appear in the data. As AI adoption accelerates, however, margin expansion across a broader range of sectors could soon follow.

Source: FactSet, The Business Week Graphic

This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.