📊 AI is reshaping profitability across the market. The S&P 500 net income margin (ex-financials) has climbed to a record ~13%. But excluding the Magnificent 7 and tech, margins fall to ~9%. That’s a ~4 percentage point gap the widest on record. Over the last 4 years, margins outside tech and financials have declined ~2 points. Profit growth is increasingly concentrated in AI-driven sectors. 📈

📊 AI is reshaping profitability across the market.

The S&P 500 net income margin (ex-financials) has climbed to a record ~13%.

But excluding the Magnificent 7 and tech, margins fall to ~9%.
That’s a ~4 percentage point gap the widest on record.

Over the last 4 years, margins outside tech and financials have declined ~2 points.

Profit growth is increasingly concentrated in AI-driven sectors. 📈