Corporate profits have risen sharply, reaching $4.35 trillion in the final quarter of 2025 and growing 10% year over year. The prior quarter also showed strong 9% annual expansion, indicating sustained elevated earnings momentum. In 2024, quarterly profit growth stayed within a narrower 3% to 7% range. Domestic manufacturing profits increased to $759.6 billion in the fourth quarter from $727.8 billion a year earlier. Sequential profitability growth also strengthened, rising to 6% quarter over quarter after 5% in the third quarter. The acceleration across sectors supports a valuation view based on fundamentals rather than prevailing market skepticism.
"“I have never seen the magnitude of these earnings increases that I have seen year to date,” Slimmon said. The implication is striking. “If this continues, we're going to look back and say, wow, the stock market wasn't expensive, it was actually cheap.”"
"Total domestic corporate profits accelerated to reach $4.35 trillion in the final quarter of 2025, locking in a powerful 10% year-over-year growth rate. The prior quarter posted a similarly strong 9% annual expansion, proving that the corporate sector has managed to sustain an elevated pace of earnings growth. For comparison, quarterly expansion throughout 2024 hovered in a much tighter band between 3% and 7%."
"The domestic manufacturing sector tells a strikingly similar story of bottom-line health when you dig into the data. This core industrial space generated $759.6 billion in fourth-quarter profits compared to $727.8 billion during the exact same window a year earlier. Sequential operational momentum is also building rapidly across corporate America, with quarter-over-quarter profitability growth picking up steam to hit 6% following a solid 5% expansion in the third quarter."
#corporate-earnings-growth #stock-market-valuation #us-corporate-profits #domestic-manufacturing #macroeconomic-data
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