We investigate the persistence of year-over-year changes in the components of operating profit. Using industry-level data, we find that changes in the volume of output exhibit a more persistent effect on profitability than changes in output prices, labor cost, labor productivity, intermediate input cost, and intermediate input productivity. Furthermore, we show that industry growth is the main driver of persistence. Industry concentration and barriers to entry, price stickiness, and cost stickiness also affect the degree of persistence. One implication of these results is that the documented higher persistence of revenue shocks, as compared to expense shocks, is likely due to the volume effect rather than the price effect of revenue.