<p><em>This research is motivated by the discrepancy between theory and facts in the</em> <em>field. Which is where the main theory says the greater the costs incurred, the smaller the profit generated. But it is different from the object that the author examines in this study, namely the greater the costs incurred, the greater the profit. Thus researchers wish to examine the Effect of Operational Costs and Production Costs on Profits in Pharmaceutical sub-sector companies registered at ISSI for the 2019-2022 period.</em> <em>The purpose of this study is to find out and analyze the effect of operational costs and profit production costs partially or simultaneously on profits in pharmaceutical sub-sector companies registered at ISSI for the 2019-2022 period.</em> <em>The research method used in this study is descriptive quantitative analysis method used descriptive analysis, classic assumption test, associative test, and hypothesis testing t test (partial) and F test (simultaneous). In this study, the independent variables are operational costs and production costs, while profits are the dependent variable. The data used in this study are annual financial report data for pharmaceutical sub-sector companies registered at ISSI for the 2019-2022 period. The results of statistical tests on the effect of operating costs and production costs on profits can be concluded as follows: 1) Operational costs partially have a significant effect on profits with a significant value of 0.024, less than a probability of 0.05; 2) Production costs partially have a significant effect on profits with a significant value of 0.000, less than a probability of 0.05; 3) Operational costs and production costs simultaneously have a significant effect on profits with a significant value of 0.000, less than a probability of 0.05.</em></p>