This page tracks U.S. corporate profits after tax, a key measure of business earnings across the entire economy. Corporate profits drive investment, hiring, stock market performance, and long‑term economic growth. Rising profits typically support higher equity valuations, while falling profits may signal economic stress or recession risk.
What This Chart Shows
- Long‑term growth in U.S. corporate earnings
- Profit declines during recessions (2001, 2008, 2020)
- Strong expansions during periods of economic growth and productivity gains
- The relationship between profits, stock market performance, and business investment
- How tax policy and economic cycles influence profitability
Key Takeaways
- Corporate profits are a core driver of equity valuations
- Rising profits support business expansion, hiring, and capital investment
- Declining profits often precede layoffs, slower growth, or recession
- Profits tend to be cyclical and closely tied to GDP and consumer demand
- This indicator pairs well with the S&P 500, GDP, and Industrial Production
Data Source
U.S. Bureau of Economic Analysis (BEA)