U.S. Corporate Profits Hit Record 13% of GDP

U.S. corporate profits reached a record 13% of GDP in the second quarter of 2026, surpassing the previous peak of 12.7% set in 2021. This growth was primarily driven by the technology sector, as four major firms — Amazon, Alphabet, Microsoft, and Meta — spent approximately $202 billion on data centers and chips in a single quarter.

Specific expenditures for the quarter ending September 30 included $77.3 billion from Amazon, $51.4 billion from Alphabet, $39.4 billion from Microsoft, and $34.0 billion from Meta. Despite these figures, TS Lombard warned that over 80% of AI-related revenue is generated from spending within the AI industry itself, suggesting earnings could be fragile if internal investment slows.

In response to market volatility and concerns over rising labor costs and potential Federal Reserve interest rate hikes, Berkshire Hathaway repurchased $9.6 billion of its own stock in the third quarter. This represents the highest quarterly stock repurchase in the history of the conglomerate.