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In the finale, one remaining contestant is declared the winner. Until the 2009 season, the stage was moved to the Kodak Theatre for the finale showdown, where the two remaining contestants perform for an audience of at least 3,400. In 2009, the venue was shifted to the Nokia Theatre, which holds an audience of over 7,000. The winner is announced at the following results show. The winner receives a one million (US) dollar record deal with a major label, and is managed by American Idol-related 19 Management. In some cases, non-winners have also been signed by the show's management company (who has first option to sign contestants) and received record deals with its major label partner. So far, all of the seasons' winners and runner-ups have had major record deals.

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This season of American Idol produced two Top 3 contestants that were never in bottom 2 or 3, Jordin Sparks (the Season 6 winner) and Melinda Doolittle (third place). They are joined by Kelly Clarkson, Clay Aiken, Carrie Underwood, Taylor Hicks, David Archuleta and David Cook as Top 3 contestants never to have been in the bottom 2 or 3.

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Winner Kelly Clarkson signed with RCA Records, the label in partnership with American Idol's 19 Management. Immediately post-finale, Clarkson released two singles, most notably the coronation song "A Moment Like This" which debuted at number 52, but marked the biggest jump in Billboard Hot 100 history when it shot to number one, breaking a record set by The Beatles. As part of the promotion planned for the show's first winner, the song had been pre-recorded ready to air on radio stations the day after the finale. (As such, a version of the song was also recorded by runner up Justin Guarini which remains unreleased.) Appearances on numerous entertainment/news shows followed, as did videos for the singles that began airing on MTV's TRL. Clarkson has subsequently had two successful albums: Thankful and Breakaway. She has several hit singles mostly from American Idols Live's more successful second album Breakaway. While American Idols Live's first album failed to sell outside of North America, American Idols Live's second was a global success and garnered two Grammy Awards in 2006 with 11 million albums sold worldwide. The less successful third album, My December as of December 2, 2007 has sold 720,000 domestically, approximately 2,000,000 copies worldwide, and was certified Platinum in Canada and the United States.

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