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 Aug 8, 2026

$129.97T Total Market Cap

— Avg P/E Ratio

$124.35 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	$16.35	96.40%	197.48M	180.33M	2.03B
2	MAIN	Main Street Capital Corp	$58.94	87.11%	578.73M	504.15M	5.38B
3	LBRDK	Liberty Broadband-C	$35.88	85.53%	1.05B	900.32M	5.32B
4	LBRDA	Liberty Broadband-A	$35.93	85.53%	1.05B	899.07M	5.32B
5	MAIN	Main Street Capital Corp	$58.94	82.75%	505.26M	396.14M	5.38B
6	LBRDK	Liberty Broadband-C	$35.88	81.25%	1.04B	802.75M	5.32B
7	LBRDA	Liberty Broadband-A	$35.93	81.25%	1.04B	801.63M	5.32B
8	OR	Or Royalties Inc	$33.08	74.30%	372.33M	276.63M	8.40B
9	NNNN	Anbio Biotechnology Ltd	$10.61	74.06%	26.18M	19.38M	1.40B
10	WDC	Western Digital Corp	$434.30	72.95%	12.09B	8.82B	155.63B
11	TGTX	Tg Therapeutics Inc	$49.76	72.56%	581.97M	422.27M	7.58B
12	OR	Or Royalties Inc	$33.08	70.59%	343.51M	229.70M	8.40B
13	NNNN	Anbio Biotechnology Ltd	$10.61	70.36%	36.56M	24.36M	1.40B
14	WDC	Western Digital Corp	$434.30	69.30%	9.49B	6.23B	155.63B
15	INVA	Innoviva Inc	$20.57	65.92%	347.70M	229.22M	1.47B
16	HTGC	Hercules Capital Inc	$17.25	63.80%	527.71M	336.69M	3.23B
17	WPM	Wheaton Precious Metals Corp	$134.20	63.58%	3.03B	1.93B	79.87B
18	OTF	Blue Owl Technology Finance	$11.70	62.89%	1.25B	788.28M	5.24B
19	INVA	Innoviva Inc	$20.57	62.62%	323.50M	191.94M	1.47B
20	TFPM	Triple Flag Precious Met	$32.62	61.74%	543.35M	335.49M	9.28B
21	FNV	Franco-Nevada Corp	$238.65	61.01%	2.48B	1.51B	62.56B
22	MTG	Mgic Investment Corp	$30.48	60.84%	1.04B	634.28M	6.16B
23	APP	Applovin Corp-Class A	$346.80	60.83%	5.38B	3.27B	116.50B
24	HTGC	Hercules Capital Inc	$17.25	60.61%	446.11M	256.17M	3.23B
25	WPM	Wheaton Precious Metals Corp	$134.20	60.40%	2.34B	1.34B	79.87B
26	TPL	Texas Pacific Land Corp	$340.65	60.31%	826.83M	498.65M	24.36B
27	OTF	Blue Owl Technology Finance	$11.70	59.75%	947.57M	536.32M	5.24B
28	TFPM	Triple Flag Precious Met	$32.62	58.65%	397.25M	220.75M	9.28B
29	UNIT	Uniti Group Inc	$9.64	58.39%	2.01B	1.17B	2.31B
30	FNV	Franco-Nevada Corp	$238.65	57.96%	2.22B	1.22B	62.56B
31	GFL	Gfl Environmental Inc-Sub Vt	$41.32	57.95%	8.89B	5.15B	21.04B
32	MTG	Mgic Investment Corp	$30.48	57.80%	1.03B	564.36M	6.16B
33	APP	Applovin Corp-Class A	$346.80	57.79%	4.31B	2.36B	116.50B
34	TPL	Texas Pacific Land Corp	$340.65	57.29%	778.92M	422.78M	24.36B
35	SNDK	Sandisk Corp	$1,212.21	56.46%	19.35B	10.92B	179.52B
36	NVDA	NVIDIA Corp	$223.96	55.60%	211.58B	117.64B	5.38T
37	AGO	Assured Guaranty Ltd	$75.43	55.58%	850.95M	472.95M	3.45B
38	UNIT	Uniti Group Inc	$9.64	55.47%	1.60B	839.84M	2.31B
39	BLX	Banco Latinoamericano Come-E	$58.55	55.22%	155.46M	206.80M	1.98B
40	GFL	Gfl Environmental Inc-Sub Vt	$41.32	55.05%	8.96B	4.67B	21.04B
41	NMIH	Nmi Holdings Inc	$44.63	55.05%	663.56M	365.31M	3.31B
42	PICS	Pics Nv	$12.80	54.81%	1.88B	1.03B	1.56B
43	ESNT	Essent Group Ltd	$68.72	54.72%	1.11B	605.99M	6.04B
44	ACT	Enact Holdings Inc	$48.96	54.56%	1.16B	630.37M	6.83B
45	GSL	Global Ship Lease Inc-Cl A	$44.34	54.34%	730.81M	397.09M	1.52B
46	SNDK	Sandisk Corp	$1,212.21	53.64%	12.96B	6.59B	179.52B
47	BAM	Brookfield Asset Mgmt-A	$52.49	53.30%	4.69B	2.50B	85.99B
48	NVDA	NVIDIA Corp	$223.96	53.06%	75.57B	37.98B	5.38T
49	AGO	Assured Guaranty Ltd	$75.43	52.80%	767.52M	383.93M	3.45B
50	KRYS	Krystal Biotech Inc	$326.45	52.64%	384.25M	202.26M	9.65B
51	BLX	Banco Latinoamericano Come-E	$58.55	52.46%	145.67M	174.40M	1.98B
52	NMIH	Nmi Holdings Inc	$44.63	52.30%	600.40M	297.49M	3.31B
53	PICS	Pics Nv	$12.80	52.07%	1.43B	705.99M	1.56B
54	ESNT	Essent Group Ltd	$68.72	51.98%	1.03B	504.94M	6.04B
55	ACT	Enact Holdings Inc	$48.96	51.83%	1.11B	544.88M	6.83B
56	GSL	Global Ship Lease Inc-Cl A	$44.34	51.62%	690.16M	337.50M	1.52B
57	V	Visa Inc	$362.50	50.14%	38.82B	19.47B	691.69B
58	PFBC	Preferred Bank/Los Angeles	$104.44	50.09%	235.18M	140.95M	1.41B
59	SFBS	Servisfirst Bancshares Inc	$88.92	49.88%	506.80M	277.33M	4.87B
60	VRSN	Verisign Inc	$294.56	49.84%	1.54B	765.99M	25.63B
61	AGI	Alamos Gold Inc-Class A	$33.15	48.97%	2.36B	1.15B	18.27B
62	IDCC	Interdigital Inc	$344.56	48.76%	604.51M	294.74M	8.61B
63	AER	Aercap Holdings Nv	$151.72	48.73%	6.89B	3.36B	23.93B
64	OTTR	Otter Tail Corp	$93.79	48.68%	559.81M	272.51M	3.90B
65	CSWC	Capital Southwest Corp	$24.80	48.68%	227.07M	110.55M	1.60B
66	RDN	Radian Group Inc	$36.91	48.62%	1.14B	552.45M	4.93B
67	WINA	Winmark Corp	$358.89	48.40%	82.68M	40.02M	1.27B
68	EWBC	East West Bancorp Inc	$131.70	48.12%	2.25B	1.30B	18.03B
69	V	Visa Inc	$362.50	47.63%	35.00B	15.80B	691.69B
70	PFBC	Preferred Bank/Los Angeles	$104.44	47.59%	215.56M	116.27M	1.41B
71	CLSK	Cleanspark Inc	$14.65	47.56%	521.05M	247.82M	3.17B
72	DAC	Danaos Corp	$141.63	47.45%	1.04B	493.14M	2.61B
73	SFBS	Servisfirst Bancshares Inc	$88.92	47.39%	449.73M	221.49M	4.87B
74	VRSN	Verisign Inc	$294.56	47.35%	1.46B	655.62M	25.63B
75	DBSDY	DBS Group Holdings Ltd	$233.85	47.28%	6.08B	3.46B	162.83B
76	QXO	Qxo Inc	$16.16	46.72%	178.01M	78.78M	16.74B
77	AGI	Alamos Gold Inc-Class A	$33.15	46.52%	1.81B	798.89M	18.27B
78	LGND	Ligand Pharmaceuticals	$293.15	46.42%	269.56M	125.13M	5.98B
79	IDCC	Interdigital Inc	$344.56	46.32%	494.97M	217.20M	8.61B
80	AER	Aercap Holdings Nv	$151.72	46.29%	6.61B	2.90B	23.93B
81	OTTR	Otter Tail Corp	$93.79	46.25%	554.15M	242.78M	3.90B
82	CSWC	Capital Southwest Corp	$24.80	46.25%	181.89M	79.69M	1.60B
83	RDN	Radian Group Inc	$36.91	46.19%	1.13B	496.16M	4.93B
84	TRIN	Trinity Capital Inc	$17.55	46.18%	412.77M	190.61M	1.71B
85	HASI	Ha Sustainable Infrastructur	$40.68	46.08%	348.19M	160.44M	4.89B
86	WABC	Westamerica Bancorporation	$60.15	46.06%	224.69M	103.25M	1.37B
87	WINA	Winmark Corp	$358.89	45.98%	81.17M	35.36M	1.27B
88	EWBC	East West Bancorp Inc	$131.70	45.71%	2.10B	1.09B	18.03B
89	MA	Mastercard Inc	$562.95	45.65%	32.07B	14.64B	498.79B
90	CATY	Cathay General Bancorp	$63.41	45.62%	707.95M	303.39M	4.24B
91	PB	Prosperity Bancshares Inc	$73.95	45.60%	1.51B	687.41M	8.89B
92	RGLD	Royal Gold Inc	$229.92	45.25%	1.25B	567.44M	19.46B
93	CLSK	Cleanspark Inc	$14.65	45.18%	289.55M	123.94M	3.17B
94	MCBS	Metrocity Bankshares Inc	$35.74	45.10%	154.78M	75.49M	1.02B
95	TSM	Taiwan Semiconductor Manufacturing	$420.23	45.10%	21.49T	9.69T	54.07T
96	DAC	Danaos Corp	$141.63	45.08%	1.02B	436.75M	2.61B
97	BYD	Boyd Gaming Corp	$83.42	45.05%	3.66B	1.65B	6.09B
98	LYFT	Lyft Inc-A	$17.46	45.03%	5.70B	2.57B	6.58B
99	DBSDY	DBS Group Holdings Ltd	$233.85	44.92%	6.04B	3.09B	162.83B
100	OZK	Bank Ozk	$51.41	44.89%	1.18B	718.05M	5.84B

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.