The technology sector continues to outpace the broader market in 2025, with the S&P 500 Information Technology Sector Index up over 14% year-to-date compared to the S&P 500's 10% rise. Within tech, software stocks lead, though gains are concentrated in a few large firms.
Focusing on profitability, Insider Monkey compiled a list of the 11 most profitable U.S.-listed tech and tech-adjacent companies by screening for firms with both operating and net profit margins above 20% and a market capitalization of at least $2 billion.
This approach highlights companies with strong earnings quality, rather than just absolute earnings. The selected firms rank by trailing twelve-month net income while also reflecting hedge fund ownership trends, offering insight into where top investors are focusing.
Notable names on the list include:
- Netflix Inc. (NASDAQ: NFLX): Reporting $10.3 billion in trailing net income, Netflix is expanding its global footprint with heavy investment in international content production, including $200 million in a Thailand hub. The company is also negotiating exclusive rights for Major League Baseball’s Home Run Derby through 2028, expanding into live sports.
- Qualcomm Inc. (NASDAQ: QCOM): Posting $11.6 billion in net income, Qualcomm expects strong growth in automotive and industrial IoT markets, targeting $4 billion in automotive revenue ahead of schedule. The firm continues to develop advanced driver-assist and safety-grade chips while expanding AI and communication capabilities through strategic acquisitions.
These companies demonstrate robust profitability and strategic positioning to benefit from emerging technology trends such as AI, data centers, and connected devices. The list underscores where smart money is betting on sustainable tech leadership with attractive earnings margins.