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Corporate profits were already at historic highs. They shot even higher in Q1.
Yahoo Finance • • business
Key Points:
- US corporate profits reached $4.42 trillion annualized in Q1 2026, up from $4.35 trillion in Q4 2025, according to Commerce Department data.
- After-tax corporate profits represent 12.4% of US GDP, the highest since mid-2021 and the second-highest quarterly level since 1947.
- Corporate profits relative to US gross domestic income hit 12.2%, the highest since the early 1950s, indicating robust earnings across the economy.
- Factors such as the AI boom and improved efficiency are driving these historically high profit levels, with companies like Micron reporting significant net income gains.
- Rising profits amid inflation have drawn bipartisan criticism, with politicians accusing corporations of price gouging and excessive greed.
