Q3 profit growth strongest for mid-sized construction firms

Summary

• Small and mid-sized firms posted positive profitability growth in the third quarter according to Bank of America business account data.
• Small businesses outpaced mid-sized firms for a second consecutive quarter.
• Mid-sized construction firms recorded the strongest September gains with a 3.6% year-over-year increase in profitability.
• Transportation & warehousing and wholesale trade sectors showed positive profitability growth for both small & mid-sized businesses in September.
• Firms in transportation & wholesale trade appear better positioned to pass through higher logistics, freight, & inventory costs or benefit from elevated supply chain demand.
• Small businesses in the report are defined as clients with under $5 million in annual sales revenue.
• Mid-sized businesses in the report are defined as clients with $5 million to $50 million in annual sales revenue.
• The data is derived from aggregated & anonymized Bank of America transaction data including business payments & payroll channels.
• Spending data is classified by Merchant Categorization Codes mapped to the North American Industry Classification System.
• The report was published on 15 October 2026 by the Bank of America Institute.