Net profit margin by industry

94 U.S. industries, highest first · January 2026

Median industry7.3%half are above, half below

Highest30.4%Semiconductor

Lowest-10.8%Green & Renewable Energy

#	Industry	Net profit margin	Gross margin	Companies
1	Semiconductor	30.4%	59.0%	66
2	Software (Entertainment)	29.9%	66.5%	77
3	Bank (Money Center)	28.9%	100.0%	15
4	Precious Metals	28.6%	55.0%	56
5	Banks (Regional)	27.5%	99.6%	568
6	Tobacco	26.7%	64.3%	10
7	Software (System & Application)	25.5%	71.7%	309
8	Transportation (Railroads)	24.7%	51.0%	4
9	Real Estate (General/Diversified)	23.8%	51.2%	12
10	Retail (REITs)	23.0%	78.6%	26
11	Financial Services (Non-bank & Insurance)	22.2%	69.2%	176
12	Semiconductor Equipment	21.3%	46.3%	31
13	Utility (Water)	21.2%	59.0%	14
14	Drugs (Pharmaceutical)	18.5%	71.7%	228
15	Investments & Asset Management	18.4%	69.8%	283
16	Computers/Peripherals	17.8%	38.4%	36
17	Diversified	16.4%	25.8%	20
18	Telecom Equipment	16.1%	58.1%	57
19	Oil/Gas (Production and Exploration)	14.6%	57.2%	142
20	Brokerage & Investment Banking	14.4%	53.3%	32
21	Telecom Services	14.2%	58.8%	39
22	Utility (General)	14.2%	44.2%	14
23	Beverage (Soft)	13.4%	54.7%	27
24	Oil/Gas Distribution	13.4%	43.4%	23
25	REITs	13.2%	58.1%	190
26	Power	12.7%	43.6%	46
27	Insurance (General)	12.4%	44.7%	21
28	Telecom (Wireless)	12.2%	63.0%	12
29	Household Products	11.7%	51.0%	110
30	Insurance (Prop/Cas.)	11.1%	30.2%	57
31	Construction Supplies	10.8%	25.5%	40
32	Machinery	10.6%	37.5%	105
33	Metals & Mining	10.5%	34.7%	73
34	Hotel/Gaming	10.4%	60.9%	63
35	Healthcare Products	9.6%	54.0%	204
36	Shipbuilding & Marine	9.5%	27.1%	8
37	Homebuilding	9.5%	22.7%	30
38	Restaurant/Dining	9.4%	32.2%	64
39	Education	8.8%	45.8%	32
40	Oil/Gas (Integrated)	8.3%	36.1%	4
41	Environmental & Waste Services	8.2%	36.3%	53
42	Transportation	8.2%	24.1%	19
43	Publishing & Newspapers	8.2%	50.4%	19
44	Retail (Building Supply)	7.8%	34.2%	14
45	Insurance (Life)	7.8%	30.0%	20
46	Healthcare Information and Technology	7.4%	48.3%	115
47	Building Materials	7.4%	30.9%	41
48	Cable TV	7.1%	62.9%	9
49	Business & Consumer Services	7.0%	33.4%	155
50	Real Estate (Development)	7.0%	35.3%	14
51	Information Services	6.5%	34.1%	15
52	Electronics (General)	6.5%	26.8%	114
53	Hospitals/Healthcare Facilities	6.3%	39.1%	31
54	Shoe	6.3%	43.9%	11
55	Retail (Distributors)	6.0%	30.6%	62
56	Engineering/Construction	5.9%	15.5%	48
57	Retail (General)	5.6%	33.2%	23
58	Retail (Special Lines)	5.2%	35.3%	94
59	Aerospace/Defense	5.0%	17.5%	79
60	Packaging & Container	4.5%	24.3%	19
61	Computer Services	4.5%	24.3%	64
62	Entertainment	4.4%	41.4%	92
63	Office Equipment & Services	4.4%	41.4%	14
64	Farming/Agriculture	3.9%	13.1%	35
65	Reinsurance	3.9%	13.2%	1
66	Apparel	3.9%	56.9%	35
67	Trucking	3.8%	21.2%	26
68	Paper/Forest Products	3.4%	17.1%	6
69	Retail (Automotive)	3.4%	22.0%	34
70	Chemical (Specialty)	2.9%	35.1%	59
71	Food Processing	2.8%	23.2%	78
72	Air Transport	2.5%	24.8%	23
73	Oilfield Services/Equipment	2.3%	11.1%	97
74	Broadcasting	2.1%	38.1%	24
75	Steel	1.9%	12.3%	19
76	Retail (Grocery and Food)	1.3%	26.3%	15
77	Auto & Truck	1.3%	10.4%	33
78	Healthcare Support Services	1.3%	12.1%	104
79	Real Estate (Operations & Services)	1.2%	32.2%	54
80	Food Wholesalers	1.2%	15.4%	13
81	Furn/Home Furnishings	1.1%	30.3%	27
82	Electrical Equipment	0.9%	31.8%	112
83	Auto Parts	0.7%	15.8%	35
84	Beverage (Alcoholic)	0.6%	47.0%	14
85	Advertising	-0.3%	36.2%	52
86	Software (Internet)	-0.9%	62.6%	29
87	Coal & Related Energy	-2.1%	14.9%	16
88	Chemical (Basic)	-3.7%	9.3%	29
89	Recreation	-4.7%	39.8%	49
90	Drugs (Biotechnology)	-5.0%	60.8%	496
91	Chemical (Diversified)	-5.3%	15.3%	4
92	Electronics (Consumer & Office)	-9.4%	38.8%	8
93	Rubber & Tires	-9.5%	18.0%	3
94	Green & Renewable Energy	-10.8%	55.2%	15

Source: Aswath Damodaran, NYU Stern, January 2026. Aggregates over U.S. public companies.

Frequently asked questions

What is a good net profit margin?

It depends on the industry: the median across these 94 industries is 7.3%, from Green & Renewable Energy (-10.8%) to Semiconductor (30.4%). Compare a business with its own industry, not with the overall average.

How is the net profit margin worked out?

Net income divided by revenue: what is left of each dollar of sales after every cost, interest and tax. Each figure is an aggregate: the total across every company in the industry, so larger companies weigh more than in a simple average.

Where does the data come from?

Aswath Damodaran’s datasets at NYU Stern, January 2026, covering thousands of U.S. public companies in 94 industries. It is refreshed each January.