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Net Income Growth Rate Screener — Find Stocks With Rising Net Income
Mid and large-cap stocks ranked by year-over-year net income growth. Filter by sector and growth threshold to shortlist companies whose bottom-line profits are expanding — the ultimate test of whether a business is truly improving after all costs, interest, and taxes are paid.
How to Read the Net Income Growth Screener
Net income is the bottom line — what remains after a company has paid every expense: cost of goods sold, salaries, rent, depreciation, interest on debt, and income taxes. It is the most comprehensive measure of profitability, capturing both operating performance and the cost of financing the business. When net income grows consistently, it means the business is not just getting more profitable at its operations but is also managing its full cost structure effectively.
The Net Income Growth YoY column compares the most recent reported fiscal year's net income to the prior year. The Net Income column shows the latest absolute figure so you can verify that the growth rate sits on a meaningful base. A 100% jump from $5M to $10M is arithmetically impressive but practically minor; steady 15% growth on $3B in net income is a compounding machine.
Net Income vs. Operating Income: What Each Measures
Operating income (EBIT) captures how profitable a company's core operations are, before financing costs and taxes enter the picture. Net income takes the next step: it subtracts interest expense on debt and income tax to arrive at what shareholders actually earned. The gap between operating and net income reveals a company's financial leverage (how much interest it pays) and its effective tax rate.
A company can grow operating income 15% while net income grows only 5% if rising interest rates are consuming the gains. Conversely, a one-time tax benefit or debt paydown can accelerate net income growth well above operating growth in a single year. Use the Operating Income Growth Screener alongside this one to separate operating leverage from financing effects.
Pairing Net Income Growth with Valuation and Quality
Net income growth is the engine behind EPS growth (adjusted for buybacks) and P/E compression. Markets pay premium multiples for companies with consistent, accelerating net income growth — and discount those where growth is slowing or volatile. Use the P/E Calculator to ask what multiple the market is assigning to this growth, and the DCF Calculator to stress-test whether the current price is justified if growth normalizes. The Net Margin Screener pairs naturally — high growth with expanding margin is the strongest setup.
Frequently asked questions
How is net income growth calculated in this screener?
Net income growth compares the most recent reported fiscal year's net income to the prior year: (current − prior) / |prior|. Data comes from each company's annual income statement via Yahoo Finance. The sign of the prior-year figure is taken as an absolute value in the denominator so that recovery from a loss year is captured correctly.
Why might a company show negative net income growth?
Rising interest costs on floating-rate debt, a one-time write-down, a higher effective tax rate, or a revenue shortfall that exposes operating leverage in reverse. A single year of negative growth on a profitable company with strong operating income is often noise — look at the operating income trend separately to isolate whether the core business is healthy.
Can net income growth be misleading?
Yes — non-recurring items (asset sales, tax settlements, restructuring charges) can inflate or depress net income in a single year. Compare a company's net income growth to its operating income growth and revenue growth for context. If net income is growing much faster than operating income, investigate whether the gap is from one-time gains or genuine financial leverage improvement.
How does this relate to return on equity (ROE)?
ROE is net income divided by shareholders' equity — it measures how efficiently a company generates profit from every dollar of equity. A company growing net income while maintaining or expanding ROE is compounding shareholder value. Use the ROE Screener to find which high net-income-growth companies are doing so with capital efficiency.