- Q3 2025 manufacturing after-tax profits rose to $249.2B (+$28.0B QoQ, +$73.1B YoY) on sales of $2,027.5B (+$43.1B QoQ, +$125.3B YoY).
- Large retail corporations (assets ≥$50M) posted after-tax profits of $53.5B (-$8.2B QoQ, +$9.1B YoY).
- Large retail sales increased to $1,097.8B (+$19.1B QoQ, +$52.7B YoY) despite weaker quarterly profitability.
- Overall, the QFR suggests manufacturing margins strengthened while retail faced near-term margin pressure even as sales grew.
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The U.S. Census Bureau’s Quarterly Financial Report (QFR) for Q3 2025 provides a snapshot of financial health in key sectors. Manufacturing firms achieved a substantial profit rebound: after-tax profits rose both sequentially (+12.7 percent from Q2 to Q3) and sharply year over year (+41.5 percent), demonstrating strong margin recovery amid perhaps easing input or logistical pressures. ([census.gov](https://www.census.gov/econ/qfr/mmws/current/index.html?utm_source=openai)) Sales followed suit, growing modestly QoQ and more robustly YoY—indicative of improving demand and production followed by greater throughput. ([census.gov](https://www.census.gov/econ/qfr/mmws/current/index.html?utm_source=openai))
By contrast, large retail trade corporations exhibited mixed performance. While sales increased both QoQ and YoY—QoQ growth in sales of ~1.8 percent and YoY growth of ~5.0 percent—profits fell substantially from Q2 to Q3, pointing to either margin compression (from rising costs, discounting, or inventory issues) or strategic reinvestment depressing net income. ([census.gov](https://www.census.gov/econ/qfr/retail/current/index.html?utm_source=openai))
Strategically, corporations and investors should note that manufacturing is enjoying a clearly favorable cycle—with profits accelerating faster than sales year-over-year. Retail, while still growing, faces near-term profitability challenges. For manufacturers, rising profits may signal favorable capacity utilization, investment opportunities, or leverage for pricing power. For retailers, pressure on cost management and operational efficiency seems more acute.
However, open questions remain: to what extent are manufacturing profits sustainable versus driven by transient tailwinds (e.g., raw material price dips, inventory reductions)? Is the retail profit decline temporary or part of structural cost pressures from labor, freight, energy, or supply chain disruptions? And how are these sector trends feeding into broader economic measures such as GDP, corporate investment, and credit conditions?
Supporting Notes
- Manufacturing after-tax profits Q3 2025: $249.2 billion, up $28.0 billion QoQ and $73.1 billion YoY. ([census.gov](https://www.census.gov/econ/qfr/mmws/current/index.html?utm_source=openai))
- Manufacturing sales Q3 2025: $2,027.5 billion, up $43.1 billion QoQ and $125.3 billion YoY. ([census.gov](https://www.census.gov/econ/qfr/mmws/current/index.html?utm_source=openai))
- Retail trade after-tax profits Q3 2025: $53.5 billion, down $8.2 billion QoQ, but up $9.1 billion YoY. ([census.gov](https://www.census.gov/econ/qfr/retail/current/index.html?utm_source=openai))
- Retail trade sales Q3 2025: $1,097.8 billion, up $19.1 billion QoQ and $52.7 billion YoY. ([census.gov](https://www.census.gov/econ/qfr/retail/current/index.html?utm_source=openai))
- Coverage: QFR covers manufacturing, mining, wholesale trade, large retail trade (assets over $50 million), and selected services, based on NAICS definitions. ([bhs.econ.census.gov](https://bhs.econ.census.gov/bhs/qfr/about.html?utm_source=openai))