Nvidia retains $55.60 of profit for every $100 of revenue, the highest margin among the 30 largest companies on the Fortune Global 500 list. Other technology giants — including Microsoft, Alphabet and Meta — also keep substantial shares of revenue as profit, each retaining more than $30 per $100 of revenue.
Large sectoral gaps in retained profit
At the lower end of the list are major retailers, healthcare and energy companies that retain less than $5 in net profit per $100 of revenue. That contrast shows that very high revenues do not necessarily translate into proportionally high profits across different industries.
How profit is measured here
The profit figures cited reflect net income after taxes, extraordinary items, accounting changes and noncontrolling interests have been deducted, but before dividends on preferred stock are paid.
Why tech companies keep more of each revenue dollar
The explanation largely stems from business models: software and digital platforms can serve additional customers with relatively low incremental costs, whereas retailers, manufacturers and energy firms face ongoing expenses for inventories, labor, materials and logistics. For example, Microsoft retains $36.10 of profit per $100 of revenue, compared with roughly $3 for retailers such as Walmart and Costco.
AI, infrastructure spending and rising capital costs
Current profit margins mirror existing business models, but the expansion of artificial intelligence (AI) is changing that landscape. Microsoft, Alphabet, Meta and Amazon are investing hundreds of billions of dollars into AI infrastructure. Capital expenditures by hyperscale cloud providers are expected to reach $785 billion in 2026 and approach $1 trillion in 2027.
Those infrastructure investments benefit suppliers such as Nvidia, which occupies a central role as a major supplier of AI chips and through its CUDA software ecosystem that can make switching to rival chips more difficult for developers. At the same time, heavier AI-related investments raise capital requirements for technology companies, which may reshape the high margins that currently characterize many tech firms on the list.
Conclusion
Among the 30 largest companies on the Fortune Global 500, technology firms dominate the top of the profitability ranking, with Nvidia standing out at $55.60 retained profit per $100 of revenue. Structural differences in business models explain much of the spread, while escalating AI infrastructure spending could alter profit margins in the coming years.
