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 Jun 24, 2026

$124.74T Total Market Cap

— Avg P/E Ratio

$108.28 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	$17.36	96.40%	206.55M	188.62M	2.12B
2	MAIN	Main Street Capital Corp	$50.02	87.11%	589.38M	513.42M	4.74B
3	LBRDK	Liberty Broadband-C	$30.86	85.53%	1.02B	871.75M	4.25B
4	LBRDA	Liberty Broadband-A	$30.82	85.53%	1.02B	874.11M	4.25B
5	MAIN	Main Street Capital Corp	$50.02	82.75%	514.56M	403.42M	4.74B
6	LBRDK	Liberty Broadband-C	$30.86	81.25%	1.01B	777.27M	4.25B
7	LBRDA	Liberty Broadband-A	$30.82	81.25%	1.01B	779.38M	4.25B
8	OR	Or Royalties Inc	$32.20	74.30%	388.44M	288.60M	9.23B
9	NNNN	Anbio Biotechnology Ltd	$15.70	74.06%	28.49M	21.09M	2.39B
10	TGTX	Tg Therapeutics Inc	$53.94	72.56%	584.49M	424.10M	8.15B
11	OR	Or Royalties Inc	$32.20	70.59%	358.37M	239.64M	9.23B
12	NNNN	Anbio Biotechnology Ltd	$15.70	70.36%	39.79M	26.51M	2.39B
13	INVA	Innoviva Inc	$23.26	65.92%	358.82M	236.55M	1.66B
14	HTGC	Hercules Capital Inc	$15.18	63.80%	527.58M	336.61M	2.90B
15	WPM	Wheaton Precious Metals Corp	$116.46	63.58%	3.26B	2.08B	78.60B
16	OTF	Blue Owl Technology Finance	$10.49	62.89%	1.29B	814.02M	4.93B
17	INVA	Innoviva Inc	$23.26	62.62%	333.85M	198.08M	1.66B
18	TFPM	Triple Flag Precious Met	$28.80	61.74%	556.89M	343.85M	8.77B
19	FNV	Franco-Nevada Corp	$213.92	61.01%	2.58B	1.57B	59.83B
20	MTG	Mgic Investment Corp	$26.49	60.84%	1.09B	664.21M	5.51B
21	APP	Applovin Corp-Class A	$467.02	60.83%	5.38B	3.27B	157.79B
22	HTGC	Hercules Capital Inc	$15.18	60.61%	446.01M	256.11M	2.90B
23	WPM	Wheaton Precious Metals Corp	$116.46	60.40%	2.52B	1.44B	78.60B
24	TPL	Texas Pacific Land Corp	$369.90	60.31%	797.58M	481.01M	24.49B
25	OTF	Blue Owl Technology Finance	$10.49	59.75%	978.52M	553.84M	4.93B
26	TFPM	Triple Flag Precious Met	$28.80	58.65%	407.15M	226.25M	8.77B
27	UNIT	Uniti Group Inc	$11.27	58.39%	2.06B	1.20B	2.83B
28	FNV	Franco-Nevada Corp	$213.92	57.96%	2.31B	1.27B	59.83B
29	GFL	Gfl Environmental Inc-Sub Vt	$36.01	57.95%	8.86B	5.13B	17.80B
30	MTG	Mgic Investment Corp	$26.49	57.80%	1.08B	590.99M	5.51B
31	APP	Applovin Corp-Class A	$467.02	57.79%	4.31B	2.36B	157.79B
32	TPL	Texas Pacific Land Corp	$369.90	57.29%	751.37M	407.83M	24.49B
33	NVDA	NVIDIA Corp	$200.04	55.60%	213.17B	118.53B	5.10T
34	AGO	Assured Guaranty Ltd	$78.14	55.58%	822.91M	457.37M	3.39B
35	UNIT	Uniti Group Inc	$11.27	55.47%	1.64B	860.96M	2.83B
36	BLX	Banco Latinoamericano Come-E	$60.18	55.22%	160.30M	213.23M	2.11B
37	GFL	Gfl Environmental Inc-Sub Vt	$36.01	55.05%	8.92B	4.65B	17.80B
38	NMIH	Nmi Holdings Inc	$38.41	55.05%	679.04M	373.83M	2.85B
39	PICS	Pics Nv	$10.50	54.81%	1.90B	1.04B	1.36B
40	ESNT	Essent Group Ltd	$59.78	54.72%	1.16B	635.68M	5.39B
41	ACT	Enact Holdings Inc	$43.32	54.56%	1.16B	630.37M	5.92B
42	GSL	Global Ship Lease Inc-Cl A	$37.89	54.34%	723.87M	393.32M	1.36B
43	NVDA	NVIDIA Corp	$200.04	53.06%	75.57B	37.98B	5.10T
44	AGO	Assured Guaranty Ltd	$78.14	52.80%	742.23M	371.28M	3.39B
45	KRYS	Krystal Biotech Inc	$340.21	52.64%	383.01M	201.61M	10.26B
46	BLX	Banco Latinoamericano Come-E	$60.18	52.46%	150.21M	179.82M	2.11B
47	NMIH	Nmi Holdings Inc	$38.41	52.30%	614.40M	304.43M	2.85B
48	PICS	Pics Nv	$10.50	52.07%	1.45B	713.95M	1.36B
49	ESNT	Essent Group Ltd	$59.78	51.98%	1.08B	529.68M	5.39B
50	ACT	Enact Holdings Inc	$43.32	51.83%	1.11B	544.88M	5.92B
51	GSL	Global Ship Lease Inc-Cl A	$37.89	51.62%	683.60M	334.30M	1.36B
52	BAM	Brookfield Asset Mgmt-A	$46.96	51.59%	4.70B	2.43B	75.75B
53	V	Visa Inc	$328.48	50.14%	38.33B	19.22B	616.56B
54	PFBC	Preferred Bank/Los Angeles	$99.04	50.09%	226.73M	135.89M	1.33B
55	SFBS	Servisfirst Bancshares Inc	$82.94	49.88%	505.43M	276.58M	4.40B
56	VRSN	Verisign Inc	$247.22	49.84%	1.61B	801.05M	24.08B
57	AGI	Alamos Gold Inc-Class A	$30.88	48.97%	2.54B	1.24B	21.59B
58	IDCC	Interdigital Inc	$279.17	48.76%	625.26M	304.86M	7.65B
59	AER	Aercap Holdings Nv	$146.41	48.73%	6.89B	3.36B	22.87B
60	OTTR	Otter Tail Corp	$88.13	48.68%	564.97M	275.02M	3.67B
61	CSWC	Capital Southwest Corp	$23.30	48.68%	218.82M	106.53M	1.43B
62	RDN	Radian Group Inc	$35.61	48.62%	1.13B	550.21M	4.61B
63	WINA	Winmark Corp	$400.34	48.40%	82.58M	39.97M	1.43B
64	EWBC	East West Bancorp Inc	$130.89	48.12%	2.25B	1.30B	17.37B
65	V	Visa Inc	$328.48	47.63%	34.56B	15.60B	616.56B
66	PFBC	Preferred Bank/Los Angeles	$99.04	47.59%	207.82M	112.10M	1.33B
67	CLSK	Cleanspark Inc	$17.24	47.56%	647.38M	307.90M	4.42B
68	DAC	Danaos Corp	$126.73	47.45%	1.03B	488.48M	2.29B
69	SFBS	Servisfirst Bancshares Inc	$82.94	47.39%	448.52M	220.89M	4.40B
70	VRSN	Verisign Inc	$247.22	47.35%	1.53B	685.64M	24.08B
71	DBSDY	DBS Group Holdings Ltd	$205.60	47.28%	6.08B	3.46B	162.83B
72	QXO	Qxo Inc	$16.22	46.72%	178.01M	78.78M	12.88B
73	AGI	Alamos Gold Inc-Class A	$30.88	46.52%	1.95B	861.14M	21.59B
74	LGND	Ligand Pharmaceuticals	$279.44	46.42%	264.75M	122.90M	5.51B
75	IDCC	Interdigital Inc	$279.17	46.32%	511.96M	224.66M	7.65B
76	AER	Aercap Holdings Nv	$146.41	46.29%	6.61B	2.90B	22.87B
77	OTTR	Otter Tail Corp	$88.13	46.25%	559.26M	245.02M	3.67B
78	CSWC	Capital Southwest Corp	$23.30	46.25%	175.28M	76.80M	1.43B
79	RDN	Radian Group Inc	$35.61	46.19%	1.13B	494.15M	4.61B
80	TRIN	Trinity Capital Inc	$16.83	46.18%	379.62M	175.30M	1.51B
81	HASI	Ha Sustainable Infrastructur	$39.15	46.08%	370.41M	170.68M	4.99B
82	WABC	Westamerica Bancorporation	$58.30	46.06%	229.50M	105.46M	1.36B
83	WINA	Winmark Corp	$400.34	45.98%	81.06M	35.31M	1.43B
84	EWBC	East West Bancorp Inc	$130.89	45.71%	2.10B	1.10B	17.37B
85	MA	Mastercard Inc	$488.07	45.65%	31.98B	14.60B	432.77B
86	CATY	Cathay General Bancorp	$60.89	45.62%	709.74M	304.16M	3.96B
87	PB	Prosperity Bancshares Inc	$72.32	45.60%	1.27B	576.80M	7.18B
88	RGLD	Royal Gold Inc	$206.61	45.25%	1.26B	568.88M	18.23B
89	CLSK	Cleanspark Inc	$17.24	45.18%	359.75M	153.99M	4.42B
90	TSM	Taiwan Semiconductor Manufacturing	$436.39	45.10%	21.49T	9.69T	54.07T
91	DAC	Danaos Corp	$126.73	45.08%	1.01B	432.63M	2.29B
92	BYD	Boyd Gaming Corp	$86.40	45.05%	3.72B	1.68B	6.29B
93	LYFT	Lyft Inc-A	$13.82	45.03%	5.74B	2.59B	5.42B
94	DBSDY	DBS Group Holdings Ltd	$205.60	44.92%	6.04B	3.09B	162.83B
95	OZK	Bank Ozk	$50.62	44.89%	1.18B	716.80M	5.59B
96	AMSC	American Superconductor Corp	$43.40	44.73%	352.45M	157.65M	2.07B
97	IBOC	International Bancshares Crp	$75.92	44.49%	668.00M	411.79M	4.57B
98	LGND	Ligand Pharmaceuticals	$279.44	44.10%	238.57M	99.68M	5.51B
99	FFIN	First Finl Bankshares Inc	$33.50	43.99%	533.35M	253.28M	4.70B
100	TRIN	Trinity Capital Inc	$16.83	43.87%	300.40M	124.85M	1.51B

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.