S&P 500’s top 7 stocks account for 26% of earnings, reflecting historic concentration

A handful of giants now drive outsized profit across multiple industries, revealing shifting dynamics in US equity sectors.

Photo: AMG National

Key Takeaways

• The top seven S&P 500 stocks account for 26% of the index's total earnings.
• These companies dominate multiple sectors, producing the majority of profits in technology, communication services, and consumer discretionary.

The S&P 500 has reached a historic level of earnings concentration, with just seven companies, Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla, now producing 26% of the index’s total net income.

This group, known as the “Magnificent Seven,” dominates profitability across multiple sectors. In Information Technology, where roughly 70 firms are listed, these companies drive 67% of the sector’s earnings.

In Communication Services, they contribute 65% of the earnings despite the sector housing around 25 stocks. Even in Consumer Discretionary, they account for 35% of total profits.

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