Highest Profit Margins

Q: What is a profit margin?

Profit margin is the percentage of revenue remaining after all expenses, taxes, and costs are deducted. A company with $100 million in revenue and $30 million in net income has a 30% profit margin. There are several types: gross margin (revenue minus cost of goods sold), operating margin (after operating expenses), and net margin (after everything including taxes and interest). This list uses net profit margin, the most comprehensive measure.

Q: What is a good profit margin?

Average profit margins vary significantly by industry. Software companies average 20-30%, pharmaceutical companies 15-25%, while retail and restaurants typically operate at 3-8%. A margin above 25% — the threshold for this list — places a company among the most profitable in any sector. What matters more than the absolute level is the trend: expanding margins suggest improving business quality, while declining margins may signal competitive pressure.

Q: What sectors have the highest profit margins?

Software, semiconductors, and pharmaceuticals consistently have the highest profit margins. Software companies benefit from near-zero marginal costs — selling one more license costs almost nothing. Semiconductor designers like Nvidia and Broadcom have margins above 50%. Pharmaceutical companies enjoy patent-protected pricing power. Financial services, especially asset management, also produces high margins. Capital-light business models generally produce higher margins than asset-heavy industries.

Q: Why do high-margin companies make good investments?

High margins indicate pricing power and competitive advantages that protect against competition and economic downturns. Companies with fat margins have a buffer — even if revenue dips, they remain profitable. They generate more free cash flow per dollar of revenue, funding dividends, buybacks, and R&D without debt. High-margin companies also tend to have higher returns on equity, meaning they create more value for shareholders per dollar invested in the business.

Q: What is an economic moat?

An economic moat is a durable competitive advantage that protects a company's profits from competitors, similar to a castle's moat. Types include brand power (Apple, Coca-Cola), network effects (Visa, Meta), switching costs (Microsoft, Adobe), cost advantages (Walmart), and intellectual property (pharmaceutical patents). Companies with wide moats tend to maintain high profit margins for years or decades. The concept was popularized by Warren Buffett as central to his investment philosophy.

Q: Can profit margins be misleading?

Yes. One-time events can temporarily inflate or depress margins — asset sales, tax benefits, or restructuring charges can distort the picture. Some companies show high net margins but low operating margins because of investment income or tax advantages rather than strong business operations. Cyclical companies may show peak margins at the top of a cycle that are unsustainable. Always look at multi-year margin trends rather than a single period.

Q: What is the difference between gross margin and net margin?

Gross margin measures profitability after subtracting only the direct costs of producing goods or services (cost of goods sold). Net margin subtracts everything — operating expenses, interest, taxes, and other costs. Gross margin shows the core profitability of the product itself, while net margin shows overall company profitability. A company with high gross margins but low net margins may be overspending on sales, marketing, or R&D, which could be either a problem or a growth investment.

Cash machines: companies turning over 25% of revenue into net profit. A sign of pricing power, brand moats, and operational efficiency.

200 stocks Updated Mar 25, 2026

$113.15T Total Market Cap

— Avg P/E Ratio

$115.97 Avg Share Price

+0.00% Avg Daily Change

Profit margin measures the percentage of revenue that a company converts into net profit after all expenses. Companies with margins above 25% are exceptional — they possess the pricing power, operational efficiency, and competitive advantages that allow them to keep a quarter or more of every dollar earned.

High profit margins are one of Warren Buffett's key criteria for identifying durable competitive advantages, or "economic moats." Companies with consistently high margins typically benefit from strong brands, network effects, intellectual property, or scale advantages that competitors cannot easily replicate. Technology and pharmaceutical companies frequently lead in margins due to low marginal costs and patent protection.

This list screens for companies with net profit margins above 25% and market caps over $1 billion. It displays margin percentages, revenue, net income, and market cap. Financial data is sourced from the most recent annual reports and updated weekly.

#	Symbol	Name	Price	Margin	Revenue	Net Income	Market Cap
1	AUPH	Aurinia Pharmaceuticals Inc	$14.41	96.40%	213.73M	195.18M	1.90B
2	PRSU	Pursuit Attractions And Hosp	$34.02	95.53%	539.33M	488.12M	1.04B
3	MAIN	Main Street Capital Corp	$54.47	93.91%	558.36M	524.36M	5.18B
4	MAIN	Main Street Capital Corp	$54.47	89.21%	453.03M	382.90M	5.18B
5	KEN	Kenon Holdings Ltd	$81.36	88.19%	671.34M	592.02M	4.22B
6	LBRDK	Liberty Broadband-C	$50.94	85.53%	1.02B	874.56M	7.12B
7	LBRDA	Liberty Broadband-A	$50.92	85.53%	1.02B	874.73M	7.12B
8	KEN	Kenon Holdings Ltd	$81.36	83.78%	591.07M	469.11M	4.22B
9	LBRDK	Liberty Broadband-C	$50.94	81.25%	1.01B	779.77M	7.12B
10	LBRDA	Liberty Broadband-A	$50.92	81.25%	1.01B	779.93M	7.12B
11	TGTX	Tg Therapeutics Inc	$31.82	72.56%	590.33M	428.34M	4.53B
12	HTGC	Hercules Capital Inc	$14.18	63.80%	522.77M	333.54M	2.78B
13	WLTH	Wealthfront Corp	$8.97	62.96%	306.50M	192.97M	1.23B
14	MTG	Mgic Investment Corp	$26.01	60.84%	1.14B	695.40M	5.88B
15	APP	Applovin Corp-Class A	$436.69	60.83%	5.38B	3.27B	148.38B
16	HTGC	Hercules Capital Inc	$14.18	60.61%	441.94M	253.77M	2.78B
17	TPL	Texas Pacific Land Corp	$530.36	60.31%	797.20M	480.78M	36.20B
18	UNIT	Uniti Group Inc	$7.77	58.39%	2.00B	1.17B	1.89B
19	SCZM	Santacruz Silver Mining Ltd	$7.14	58.12%	393.22M	228.56M	1.24B
20	MTG	Mgic Investment Corp	$26.01	57.80%	1.13B	618.74M	5.88B
21	APP	Applovin Corp-Class A	$436.69	57.79%	4.31B	2.36B	148.38B
22	OTTR	Otter Tail Corp	$86.55	57.51%	535.09M	307.74M	3.63B
23	TPL	Texas Pacific Land Corp	$530.36	57.29%	751.01M	407.63M	36.20B
24	NVDA	NVIDIA Corp	$178.68	55.60%	217.95B	121.18B	4.27T
25	UNIT	Uniti Group Inc	$7.77	55.47%	1.59B	837.81M	1.89B
26	BLX	Banco Latinoamericano Come-E	$50.90	55.22%	160.66M	196.09M	1.73B
27	SCZM	Santacruz Silver Mining Ltd	$7.14	55.21%	225.44M	117.93M	1.24B
28	NMIH	Nmi Holdings Inc	$37.22	55.05%	677.92M	373.22M	2.79B
29	ESNT	Essent Group Ltd	$57.95	54.72%	1.19B	649.15M	5.70B
30	OTTR	Otter Tail Corp	$86.55	54.63%	519.61M	268.95M	3.63B
31	ACT	Enact Holdings Inc	$40.30	54.56%	1.15B	628.00M	6.00B
32	NVDA	NVIDIA Corp	$178.68	53.06%	75.57B	37.98B	4.27T
33	KRYS	Krystal Biotech Inc	$254.95	52.64%	389.33M	204.94M	7.54B
34	BLX	Banco Latinoamericano Come-E	$50.90	52.46%	150.54M	165.37M	1.73B
35	CCEC	Capital Clean Energy Carrier	$19.82	52.42%	367.30M	192.52M	1.30B
36	BXSL	Blackstone Secured Lending F	$24.14	52.31%	1.53B	802.00M	5.53B
37	NMIH	Nmi Holdings Inc	$37.22	52.30%	613.39M	303.92M	2.79B
38	ESNT	Essent Group Ltd	$57.95	51.98%	1.10B	540.91M	5.70B
39	ACT	Enact Holdings Inc	$40.30	51.83%	1.11B	542.84M	6.00B
40	BAM	Brookfield Asset Mgmt-A	$43.69	51.59%	4.80B	2.48B	75.13B
41	AGO	Assured Guaranty Ltd	$81.48	51.16%	615.74M	314.99M	3.99B
42	V	Visa Inc	$304.91	50.14%	38.49B	19.30B	603.38B
43	PFBC	Preferred Bank/Los Angeles	$87.59	50.09%	231.43M	138.70M	1.19B
44	SFBS	Servisfirst Bancshares Inc	$73.86	49.88%	496.39M	271.70M	3.93B
45	VRSN	Verisign Inc	$251.70	49.84%	1.56B	776.52M	21.50B
46	CCEC	Capital Clean Energy Carrier	$19.82	49.80%	291.53M	137.53M	1.30B
47	GSL	Global Ship Lease Inc-Cl A	$37.80	49.73%	717.21M	356.69M	1.33B
48	BXSL	Blackstone Secured Lending F	$24.14	49.69%	1.19B	561.49M	5.53B
49	FNV	Franco-Nevada Corp	$233.67	49.58%	1.52B	753.04M	67.11B
50	QXO	Qxo Inc	$20.46	49.18%	197.41M	97.08M	18.52B
51	WINA	Winmark Corp	$410.93	49.15%	78.83M	38.75M	1.67B
52	IDCC	Interdigital Inc	$311.05	48.76%	583.30M	284.40M	8.95B
53	AER	Aercap Holdings Nv	$137.82	48.73%	7.31B	3.56B	22.78B
54	RDN	Radian Group Inc	$32.97	48.62%	1.17B	569.18M	4.66B
55	AGO	Assured Guaranty Ltd	$81.48	48.60%	638.60M	294.02M	3.99B
56	EWBC	East West Bancorp Inc	$106.77	48.12%	2.23B	1.29B	16.39B
57	V	Visa Inc	$304.91	47.63%	34.70B	15.66B	603.38B
58	PFBC	Preferred Bank/Los Angeles	$87.59	47.59%	212.12M	114.42M	1.19B
59	CLSK	Cleanspark Inc	$9.40	47.56%	600.86M	285.78M	2.51B
60	DAC	Danaos Corp	$114.09	47.45%	1.02B	484.23M	2.01B
61	SFBS	Servisfirst Bancshares Inc	$73.86	47.39%	440.49M	216.99M	3.93B
62	VRSN	Verisign Inc	$251.70	47.35%	1.48B	664.64M	21.50B
63	DBSDY	DBS Group Holdings Ltd	$176.84	47.28%	6.11B	3.48B	163.30B
64	GSL	Global Ship Lease Inc-Cl A	$37.80	47.24%	614.84M	275.20M	1.33B
65	TLN	Talen Energy Corp	$328.29	47.19%	1.88B	889.25M	17.36B
66	FNV	Franco-Nevada Corp	$233.67	47.10%	1.60B	713.64M	67.11B
67	QXO	Qxo Inc	$20.46	46.72%	178.01M	78.78M	18.52B
68	WINA	Winmark Corp	$410.93	46.69%	77.82M	34.43M	1.67B
69	OTF	Blue Owl Technology Finance	$12.65	46.67%	692.92M	323.35M	5.76B
70	ADMA	Adma Biologics Inc	$9.63	46.35%	408.22M	189.21M	3.83B
71	IDCC	Interdigital Inc	$311.05	46.32%	477.60M	209.58M	8.95B
72	AER	Aercap Holdings Nv	$137.82	46.29%	7.01B	3.08B	22.78B
73	RDN	Radian Group Inc	$32.97	46.19%	1.17B	511.19M	4.66B
74	TRIN	Trinity Capital Inc	$14.34	46.18%	352.05M	162.57M	1.25B
75	RGLD	Royal Gold Inc	$232.99	46.15%	941.22M	434.40M	22.87B
76	HASI	Ha Sustainable Infrastructur	$36.82	46.08%	367.49M	169.33M	4.55B
77	WABC	Westamerica Bancorporation	$51.56	46.06%	245.45M	112.79M	1.24B
78	EWBC	East West Bancorp Inc	$106.77	45.71%	2.08B	1.08B	16.39B
79	MA	Mastercard Inc	$502.76	45.65%	32.09B	14.65B	461.31B
80	CATY	Cathay General Bancorp	$49.50	45.62%	703.83M	301.63M	3.60B
81	PB	Prosperity Bancshares Inc	$66.20	45.60%	1.28B	580.95M	6.97B
82	CLSK	Cleanspark Inc	$9.40	45.18%	333.91M	142.93M	2.51B
83	TSM	Taiwan Semiconductor Manufacturing	$329.24	45.10%	20.80T	9.38T	47.98T
84	DAC	Danaos Corp	$114.09	45.08%	1.00B	428.86M	2.01B
85	BYD	Boyd Gaming Corp	$84.87	45.05%	3.78B	1.70B	6.05B
86	LYFT	Lyft Inc-A	$13.26	45.03%	5.99B	2.70B	5.25B
87	DBSDY	DBS Group Holdings Ltd	$176.84	44.92%	6.07B	3.11B	163.30B
88	OZK	Bank Ozk	$45.02	44.89%	1.18B	715.49M	5.57B
89	TLN	Talen Energy Corp	$328.29	44.83%	1.43B	608.15M	17.36B
90	IBOC	International Bancshares Crp	$67.71	44.49%	666.48M	407.47M	4.19B
91	ADMA	Adma Biologics Inc	$9.63	44.03%	234.55M	97.85M	3.83B
92	FFIN	First Finl Bankshares Inc	$29.39	43.99%	532.85M	253.04M	4.14B
93	TRIN	Trinity Capital Inc	$14.34	43.87%	278.59M	115.78M	1.25B
94	RGLD	Royal Gold Inc	$232.99	43.84%	735.27M	305.41M	22.87B
95	INSW	International Seaways Inc	$70.27	43.79%	946.77M	414.60M	3.26B
96	HASI	Ha Sustainable Infrastructur	$36.82	43.78%	309.70M	128.43M	4.55B
97	WABC	Westamerica Bancorporation	$51.56	43.76%	219.55M	90.80M	1.24B
98	HALO	Halozyme Therapeutics Inc	$63.24	43.74%	811.57M	354.97M	8.40B
99	MA	Mastercard Inc	$502.76	43.37%	28.20B	11.58B	461.31B
100	CATY	Cathay General Bancorp	$49.50	43.34%	680.48M	262.46M	3.60B

Frequently Asked Questions

What is a profit margin?

Profit margin is the percentage of revenue remaining after all expenses, taxes, and costs are deducted. A company with $100 million in revenue and $30 million in net income has a 30% profit margin. There are several types: gross margin (revenue minus cost of goods sold), operating margin (after operating expenses), and net margin (after everything including taxes and interest). This list uses net profit margin, the most comprehensive measure.

What is a good profit margin?

Average profit margins vary significantly by industry. Software companies average 20-30%, pharmaceutical companies 15-25%, while retail and restaurants typically operate at 3-8%. A margin above 25% — the threshold for this list — places a company among the most profitable in any sector. What matters more than the absolute level is the trend: expanding margins suggest improving business quality, while declining margins may signal competitive pressure.

What sectors have the highest profit margins?

Software, semiconductors, and pharmaceuticals consistently have the highest profit margins. Software companies benefit from near-zero marginal costs — selling one more license costs almost nothing. Semiconductor designers like Nvidia and Broadcom have margins above 50%. Pharmaceutical companies enjoy patent-protected pricing power. Financial services, especially asset management, also produces high margins. Capital-light business models generally produce higher margins than asset-heavy industries.

Why do high-margin companies make good investments?

High margins indicate pricing power and competitive advantages that protect against competition and economic downturns. Companies with fat margins have a buffer — even if revenue dips, they remain profitable. They generate more free cash flow per dollar of revenue, funding dividends, buybacks, and R&D without debt. High-margin companies also tend to have higher returns on equity, meaning they create more value for shareholders per dollar invested in the business.

What is an economic moat?

An economic moat is a durable competitive advantage that protects a company's profits from competitors, similar to a castle's moat. Types include brand power (Apple, Coca-Cola), network effects (Visa, Meta), switching costs (Microsoft, Adobe), cost advantages (Walmart), and intellectual property (pharmaceutical patents). Companies with wide moats tend to maintain high profit margins for years or decades. The concept was popularized by Warren Buffett as central to his investment philosophy.

Can profit margins be misleading?

Yes. One-time events can temporarily inflate or depress margins — asset sales, tax benefits, or restructuring charges can distort the picture. Some companies show high net margins but low operating margins because of investment income or tax advantages rather than strong business operations. Cyclical companies may show peak margins at the top of a cycle that are unsustainable. Always look at multi-year margin trends rather than a single period.

What is the difference between gross margin and net margin?

Gross margin measures profitability after subtracting only the direct costs of producing goods or services (cost of goods sold). Net margin subtracts everything — operating expenses, interest, taxes, and other costs. Gross margin shows the core profitability of the product itself, while net margin shows overall company profitability. A company with high gross margins but low net margins may be overspending on sales, marketing, or R&D, which could be either a problem or a growth investment.