As of the latest FactSet reporting, the median (blended) net margin for the S&P 500 index for Q3 2023 is 11.6%, which is below the year-ago net profit margin (11.9%), equal to the previous quarter’s net profit margin (11.6%), and above the 5-year average (11.4%). If 11.6% is the actual net profit margin for the quarter, it will mark the 7th straight quarter in which the net profit margin has declined YoY.

The (blended) net profit margin for the S&P 500 in the previous quarter of 2023 was 11.1%, lower than the preceding quarter's net margin (11.5%), and, again, lower than the previous year's net margin (12.2%), and lower on a 5-year average (11.4%). If the actual net profit margin for the quarter is 11.1%, this will be the sixth consecutive quarter of annual decline in the index's net profit margin.

At the industry level, compared with Q2 of 2022, the net profit margin of four industries increased YoY in the Q2 2023, including the real estate industry (36.9% vs. 35.3%) and the consumer discretionary industry (7.3% vs. 6.0%) leading and communications services (11.5% vs. 10.4%).

On the other hand, 7 industries reported a decrease in net profit margin in the second quarter of 2023 compared with the second quarter of 2022, led by the energy (9.9% vs. 14.4%), materials (10.8% vs. 14.5%) industries and health care (7.6% vs. 11.0%).

According to FactSet, surprisingly, Wall Street analysts believe net profit margins for the S&P 500 will be higher going forward. As of today, the estimated net profit margins for Q1 2024 and Q2 2024 are 11.7% and 11.7%, respectively.