Most Profitable U.S. Companies by Sector
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U.S. corporate profits hit record highs in 2022, even as stocks plunged into a bear market and inflation hit a 40-year high.
In the face of these headwinds, investors are watching company fundamentals very closely. Corporate profit margins provide a buffer against rising borrowing costs and price pressures, and are an important measure of financial health for many reasons.
This chart shows America’s most profitable companies by sector using the data below. luck.
America’s Most Profitable Company
Below are the US companies with the highest annual profits in each sector. Data are based on his fiscal year ending January 31, 2023 for the Fortune 500 company.
Includes both public and private companies incorporated and operated in the United States.
| name | sector | Annual profit for 2022 | Annual rate of change (%) |
|---|---|---|---|
| apple | technology | $99.8 billion | 5.4% |
| exxon mobil | energy | $55.7 billion | 141.9% |
| JP Morgan Chase | Finance | $37.7 billion | -22.1% |
| Pfizer | health care | $31.3 billion | 42.7% |
| Verizon Communications | Telecommunications | $21.3 billion | -3.7% |
| home depot | retail business | $17.1 billion | 4.1% |
| visa | business service | $15 billion | 21.5% |
| Procter & Gamble | Household goods | $14.7 billion | 3.0% |
| Tesla | cars and parts | $12.6 billion | 127.5% |
| UPS | Transportation facilities | $11.5 billion | -10.4% |
| coca cola | food, beverages and tobacco | $9.5 billion | -2.3% |
| Nucor | material | $7.6 billion | 11.4% |
| deer | industrial | $7.1 billion | 19.6% |
| McDonald’s | Hotel, Restaurant, Leisure | $6.2 billion | -18.1% |
| Nike | clothes | $6 billion | 5.6% |
| dupont | chemicals | $5.9 billion | -9.3% |
| DR Houghton | engineering and construction | $5.9 billion | 40.3% |
| lockheed martin | aerospace and defense | $5.7 billion | -9.2% |
| Netflix | media | $4.5 billion | -12.2% |
| walgreens boots alliance | Food/Drugstore | $4.3 billion | 70.6% |
| WW Granger | wholesaler | $1.5 billion | 48.3% |
Apple is America’s most profitable company.arrival about $100 billion In 2022 earnings will surpass the earnings leaders in both the energy and financial sectors combined. Moreover, the net profit margin reached nearly 25% at the end of 2022.
As the smartphone market matures, the company is focusing more on service-based revenue. The iPhone accounts for about half of total net sales, but growth has plateaued. iPhone sales grew 7% last year, up from 39% the year before. Meanwhile, revenue from services, including cloud, AppleCare and advertising, grew 14% over the year.
In the energy sector, ExxonMobil took the top spot with record profits of over $55 billion. Profits jumped about 142% last year as oil prices soared after Russia’s invasion of Ukraine. Drastic cost cutting due to the pandemic also contributed to the company’s profit growth.
JPMorgan Chase posted the highest profits in the financial sector. The country’s largest bank by assets experienced a plunge in its investment banking sector as rising interest rates made financing mergers and acquisitions less profitable.Overall, the profit 22% per annum.
Perspective of corporate profit
Low taxes and interest rates contributed about a third of the earnings growth across the nonfinancial companies in the S&P 500 over the past 20 years. paper From the Fed program.
Now, as interest rates rise, higher costs can put pressure on earnings. The good news is that so far, companies have shown resilience to changes in the interest rate regime. U.S. corporate profits fell modestly by just over 5% in the first quarter of 2023.
Profitability and Competitive Advantage
What does this mean for investors?
For investors looking for companies that can overcome this situation higher fee, profitability is one of the factors to consider. Profitable companies are better able to reinvest in their businesses, pay dividends, and weather the challenges of rising costs.
Moreover, profitable companies often have strong market share thanks to cost savings through economies of scale, demand drive through brand loyalty, and economic moats. For example, Apple and Visa know this.
Over time, this builds a sustainable competitive advantage. When a company remains profitable, it adds value to shareholders and often supports share prices over the long term.
