10 Most Profitable Stocks of the Past 5 Years

Here is a list of the 10 Most Profitable Stocks of the Past 5 Years.

Page 3 of 3

3. Microsoft Corporation (NASDAQ:MSFT)

5-Year Net Income: $468.78 billion

Number of Hedge Funds: 273

Microsoft Corporation (NASDAQ:MSFT) has maintained strong profitability through its combination of enterprise software subscriptions and expanding cloud infrastructure. While Microsoft 365 provides recurring revenue, Azure has become a major source of growth as businesses increase spending on cloud computing and artificial intelligence.

The company’s latest results demonstrate that this demand is translating into operating profits. Azure revenue increased 48% to $33.17 billion in the September 2026 quarter, while operating income rose 21%. Microsoft also generated $18.6 billion in free cash flow despite substantial infrastructure investments, exceeding analyst expectations by around $10 billion, according to Reuters.

Microsoft’s $677 billion in commercial remaining performance obligations provides visibility into future revenue, although these contracts will be recognized over different periods. Management also expects Azure revenue growth of 49%–50% in the following quarter, which exceeds analyst estimates ​of 47.6%, according to Reuters.

However, the company’s $45.2 billion in quarterly capital expenditure highlights the growing costs of supporting AI demand. Furthermore, reported net income growth of 32% partly reflected investment-related accounting effects, compared with 18% growth on an adjusted basis.

Continued profitability growth for the company therefore will depend on whether cloud revenue expansion can sufficiently offset rising infrastructure and depreciation costs. Read more extensively about whether Microsoft is a good stock to buy right now here.

2. Apple Inc. (NASDAQ:AAPL)

5-Year Net Income: $531.48 billion

Number of Hedge Funds: 169

Apple Inc. (NASDAQ:AAPL) continues to generate substantial earnings from its iPhone business, supported by an expanding services ecosystem that generates revenue beyond the initial hardware purchase. The combination enables Apple to benefit from both device sales and recurring spending across its installed customer base.

Services have become particularly important to Apple’s profitability as the company balances hardware demand with higher-margin digital offerings. In its fiscal third quarter of 2026, services revenue increased 12.1% to $30.74 billion, while iPhone sales rose 21.7% to $54.25 billion, exceeding the $53.86 billion estimate.

Nevertheless, Apple’s earnings growth faces constraints beyond consumer demand. Management has warned that shortages related to high-end processors and memory components are limiting its ability to meet demand, and that these shortages may affect both sales volumes and production costs.

Chief Financial Officer Kevan Parekh told analysts on a call that the company forecast revenue growth of 9% to 11% for its September quarter, below analysts’ expectations of 12% at the time. Factors like these place AAPL among our list of the best big name stocks according to financial media.

Continued services expansion and hardware demand provide opportunities for higher income, but Apple’s ability to convert that demand into earnings will depend partly on supply availability and maintaining profitability across its product portfolio.

1. Alphabet Inc. (NASDAQ:GOOGL)

5-Year Net Income: $601.75 billion

Number of Hedge Funds: 275

Alphabet Inc. (NASDAQ:GOOGL) leads this ranking, supported by Google’s highly profitable advertising operations and rapidly expanding cloud business. Search and YouTube continue generating substantial earnings, while demand for AI infrastructure is strengthening Google Cloud’s contribution to operating income.

Google Cloud’s operating income more than tripled to $11.12 billion in the September 2026 quarter, as revenue increased by a record 103% to $30.71 billion, supported by solid growth in Google Cloud Platform across enterprise AI solutions and enterprise AI infrastructure, along with core GCP services.

However, Alphabet’s exceptionally high reported profitability requires qualification. Its latest quarter included an $8.66 billion loss on equity securities, contrasting with substantial investment gains earlier in 2026. These fluctuations make reported net income less representative of recurring operating performance.

According to Reuters, Alphabet’s quarterly free cash flow was negative $9.07 billion, with an increase in capital spending and a slowdown in core ad business growth. For more comparative insight on how Alphabet compares with other popular stocks, read our insightful article on Microsoft vs. Alphabet: Is GOOGL’s Cloud Growth Worth More Than Investors Think?

The company’s $561 billion cloud backlog provides visibility into future demand, but does not guarantee equivalent earnings growth. Sustaining profitability will depend on converting cloud contracts into operating income while managing infrastructure costs and maintaining advertising growth amid competition in AI-powered search.

While we acknowledge the risk and potential of GOOGL as an investment, we believe certain AI infrastructure stocks offer far stronger long-term potential at a much more attractive entry point. If you are looking for an AI stock more promising than GOOGL that operates as a critical AI tollbooth and stands as the most important company in the world, check out our report about this must-own AI stock.

READ NEXT: Can Eli Lilly Catch Novo Nordisk in the Oral GLP-1 Race? AND Abbott vs. Intuitive Surgical: Is Consistent Growth Better Than Premium Growth? 

This article is originally published at Insider Monkey.

Page 3 of 3