Net profit margin equals net income divided by revenue, after subtracting cost of goods sold, operating expenses, interest and taxes. A rising margin means a company keeps more of every dollar of sales as profit, whether because revenue is growing faster than costs or because costs are being cut.
Awaiting gradingThe S&P 500's Record 15.7% Margin Drops to 14.4% Without AlphabetCheck after Microsoft, Meta, Amazon and Apple report Q2 results whether their margins improved similarly, that determines whether 15.7% reflects a broad AI boom or an Alphabet-sized illusion.