Yahoo Finance 25 Most Profitable Companies in the US
In this piece, we will take a look at the 25 most profitable companies in the US. If you want to skip our overview of the US economy and the current business climate, you can jump ahead to the 5 Most Profitable Companies in the US.
With the second quarter of 2024 with us, Wall Street is focused on determining whether companies that are investing in AI are actually bringing in money or whether they are investing costly capital to set themselves up for future growth. Firms that belong to the former sector, i.e. those that are making money from AI, have been rewarded as has been the case with Microsoft Corporation (NASDAQ:MSFT). Just like NVIDIA is Wall Street's favorite AI stock when it comes to semiconductors needed to power up large data processing software, Microsoft is the king of the jungle when it comes to AI software. In the latter segment, the best example is Meta Platforms, Inc. (NASDAQ:META) whose shares have dropped after the latest earnings report revealed that 2024 will require an additional $40 billion in capital to fund AI growth.
This sharp eye on AI comes when investors are grappling with an economy that might be starting to slow down just as the Federal Reserve finds it difficult to tamp down on inflation. While the AI gold rush of 2023 put inflation and other macroeconomic indicators on the backdrop, after the inflation data for March 2024, they are back in the spotlight. This environment, which has left investors eager to flee away from stocks once again comes as profitability becomes key, particularly as profits are important to enable firms to position themselves for growth (such as is the case with AI stocks) or keep investors happy by paying out dividends.
US companies are also some of the biggest in the world when it comes to profits. America's corporate sector, particularly the technology industry, is the most developed in the world. Firms such as Apple Inc. (NASDAQ:AAPL) and Amazon.com, Inc. (NASDAQ:AMZN) are able to compete with the world's largest state owned enterprises when it comes to revenue. In fact, Apple is the first company in the world that has proven that technology and personal computing is a more lucrative industry than oil - a commodity that is responsible for powering daily lives. To understand how, consider that Apple's trailing twelve month revenue as of December 2023 sits at a whopping $385 billion.
Now, compare this with the net sales of the Saudi state owned oil giant Saudi Arabian Oil Company (TADAWUL:2222.SR), which has raked in SAR2 trillion during the same time period. Using an exchange rate of 3.75 SAR to a dollar leads to approximately $530 billion in revenue for the Saudi oil giant. While naturally, Aramco's revenue is higher since it does not have any comparable competitors on a global level, the fact that a consumer technology firm that is dependent not only on the need to stay abreast with innovation but also with what its rivals are doing is able to earn more than half of the revenue is something in itself to say the least.
As a whole, Insider Monkey also looked at the 30 Largest Companies in the World by Revenue. This shows that US companies reign supreme even though Aramco enjoys free access to the vast global crude oil market. The US retail giant Walmart Inc. (NYSE:WMT) tops this list courtesy of its $648 billion in sales, showing that a well run privately owned company has the full potential to take on massive state owned giants.
But what about profits? After all, even if a firm makes hundreds of billions of dollars in revenue, its investors get nothing if money does not flow through the income statement and into retained earnings. Today, we'll look at some of the most profitable companies in America, with a couple of top picks being Berkshire Hathaway Inc. (NYSE:BRK-B), Apple Inc. (NASDAQ:AAPL), and Microsoft Corporation (NASDAQ:MSFT).
Photo by Christian Dubovan on Unsplash
Our Methodology
For our list of the most profitable companies in the US, we ranked all publicly listed US firms by their trailing twelve month net income available on Yahoo Finance and picked out those with the highest profit.
25 Most Profitable Companies in the US.
25. ConocoPhillips (NYSE:COP)
Trailing Twelve Month Net Income: $10.9 billion
ConocoPhillips (NYSE:COP) is an American oil and gas company headquartered in Houston, Texas. April 2024 proved to be a crucial month for the firm as it entered into a $9.5 billion deal with Shell for production assets in the U.S. Along with Apple Inc. (NASDAQ:AAPL), Berkshire Hathaway Inc. (NYSE:BRK-B), Apple Inc. (NASDAQ:AAPL),and Microsoft Corporation (NASDAQ:MSFT), ConocoPhillips (NYSE:COP) is one of the profitable companies in the US.
24. Mastercard Incorporated (NYSE:MA)*
Trailing Twelve Month Net Income: $11.1 billion
Mastercard Incorporated (NYSE:MA) is an American financial payments services provider. The firm kicked off May 2024 on a strong note after its latest financials saw Mastercard Incorporated (NYSE:MA) beat profit estimates but ended up cutting down guidance for 2024.
23. Verizon Communications Inc. (NYSE:VZ)
Trailing Twelve Month Net Income: $11.3 billion
Verizon Communications Inc. (NYSE:VZ) is an American telecommunications carrier headquartered in New York City. It ended April 2024 on a controversial note that saw the FCC fine the firm $46.9 million for improperly sharing customer data. Verizon Communications Inc. (NYSE:VZ), and other carriers contested the fine and denied wrongdoing.
22. Broadcom Inc. (NASDAQ:AVGO)
Trailing Twelve Month Net Income: $11.6 billion
Broadcom Inc. (NASDAQ:AVGO) is a semiconductor firm that primarily designs and sells connectivity products. Its much hyped acquisition of VMware remained at the center of attention in May 2024 after being criticized for cost increases and licensing concerns.
21. Cisco Systems, Inc. (NASDAQ:CSCO)
Trailing Twelve Month Net Income: $13.4 billion
Cisco Systems, Inc. (NASDAQ:CSCO) is an American communications products provider headquartered in San Francisco, California. The firm scored a win in May 2024 when a security tool backed by it secured a $150 million investment.
20. AT&T Inc. (NYSE:T)
Trailing Twelve Month Net Income: $14.1 billion
AT&T Inc. (NYSE:T) is an American telecommunications carrier. Like Verizon, it was also fined a hefty amount by the FCC in April 2024 for sharing customer data.
19. The Procter & Gamble Company (NYSE:PG)
Trailing Twelve Month Net Income: $14.8 billion
The Procter & Gamble Company (NYSE:PG) is one of the largest and oldest consumer goods companies in the world. Set up in 1837, it tried its hand at giving back to the community in April 2024 after providing relief goods to tornado victims in America.
18. The Home Depot, Inc. (NYSE:HD)
Trailing Twelve Month Net Income: $15.1 billion
The Home Depot, Inc. (NYSE:HD) is an American retailer that sells building and home improvement products. The average share price target is $388 and the average rating is Buy.
17. Comcast Corporation (NASDAQ:CMCSA)
Trailing Twelve Month Net Income: $15.4 billion
Comcast Corporation (NASDAQ:CMCSA) is one of the biggest media and broadcasting companies in the world. The firm's latest earnings report saw it beat analyst revenue estimates on the back of strong performance by its streaming service. However, troubles in its broadband market continued to brew.
16. Walmart Inc. (NYSE:WMT)
Trailing Twelve Month Net Income: $15.5 billion
Walmart Inc. (NYSE:WMT) is the world's largest brick and mortar retailer. It's also one of the biggest companies in the world in terms of its revenue.
15. Federal National Mortgage Association (OTC:FNMAL)
Trailing Twelve Month Net Income: $17.4 billion
Federal National Mortgage Association (OTC:FNMAL) is a U.S. government backed mortgage association. The firm's latest financial quarter saw it miss analyst revenue estimates of $7.8 billion by posting $7.1 billion in the segment.
14. Wells Fargo & Company (NYSE:WFC)
Trailing Twelve Month Net Income: $17.9 billion
Wells Fargo & Company (NYSE:WFC) is one of the biggest banks in America. The firm's first quarter earnings report saw it beat analyst earnings and revenue estimates while net interest income dropped by 8%.
13. Visa Inc. (NYSE:V)
Trailing Twelve Month Net Income: $18.3 billion
Visa Inc. (NYSE:V) is another payment network and platform provider. Its first quarter earnings provided investors with some respite, as despite persistent inflation, consumer card spending jumped by 17%.
12. Chevron Corporation (NYSE:CVX)
Trailing Twelve Month Net Income: $21.3 billion
Chevron Corporation (NYSE:CVX) is an American oil major. May 2024 is seeing the firm expand its global operations base by targeting offshore sites in Australia and Namibia.
11. UnitedHealth Group Incorporated (NYSE:UNH)
Trailing Twelve Month Net Income: $22.3 billion
UnitedHealth Group Incorporated (NYSE:UNH) is an American healthcare coverage plan provider. Its Change Healthcare division's hack earlier this year generated fresh controversy in April 2024 when it was revealed that nearly all hospitals in America had to deal with the blow back.
10. Bank of America Corporation (NYSE:BAC)
Trailing Twelve Month Net Income: $24.8 billion
Bank of America Corporation (NYSE:BAC) is another sizeable American bank. It teamed up with banking behemoth JPMorgan to declare that $4.5 billion in loans had soured due to consumers being unable to pay.
9. Amazon.com, Inc. (NASDAQ:AMZN)*
Trailing Twelve Month Net Income: $30.4 billion
Amazon.com, Inc. (NASDAQ:AMZN) is the world's largest eCommerce retailer. The firm's latest financials saw the stock soar as its profit more than triple, leading the shares to soar following the results.
8. Exxon Mobil Corporation (NYSE:XOM)
Trailing Twelve Month Net Income: $32.8 billion
Exxon Mobil Corporation (NYSE:XOM) is one of the biggest privately owned oil companies in the world. The firm scored a win in April 2024 after Cowen raised the share price target to $135 from $128 and kept a Buy rating on the shares.
7. Johnson & Johnson (NYSE:JNJ)
Trailing Twelve Month Net Income: $35.1 billion
Johnson & Johnson (NYSE:JNJ) is an American healthcare and personal wellness products provider. May 2024 saw the firm make some progress on its talc cancer lawsuit woes by offering $6.5 billion in settlement.
6. Meta Platforms, Inc. (NASDAQ:META)
Trailing Twelve Month Net Income: $45.7 billion
Meta Platforms, Inc. (NASDAQ:META) is the holding company for Facebook, Instagram, and WhatsApp. The firm's latest earnings call saw CEO Mark Zuckerberg outline a portfolio of AR products that he believes will benefit from the AI revolution.
Berkshire Hathaway Inc. (NYSE:BRK-B), Apple Inc. (NASDAQ:AAPL), and Microsoft Corporation (NASDAQ:MSFT) are some of the most profitable companies in the US.
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Disclosure: None. 25 Most Profitable Companies in the US is originally published on Insider Monkey.
