The Earnings Season Kicks Off With High Expectations.
Analysts are revising estimates upward, which is uncommon ahead of reporting
S&P 500 earnings are expected to grow close to 30%.
The third-quarter earnings season begins with elevated expectations. FactSet projects that S&P 500 earnings will grow 29.6% year over year and revenues 12.4%, which would mark the third consecutive quarter of earnings growth above 25%. In addition, analysts revised their estimates upward during the quarter, which is unusual, and a record 72 companies have issued positive guidance.
Valuations have moderated: the 12-month forward P/E is 19.1x, equal to its 10-year average and below the 20.4x recorded in June. However, growth is concentrated in energy (121.1%) and technology (65.1%), with semiconductors expected to rise 130%; excluding them, the technology sector would grow 24.4%. Companies tend to beat estimates, so the focus will be on Q4 guidance.
Quarterly Earnings
The Earnings Season Kicks Off With High Expectations.
Analysts are revising estimates upward, which is uncommon ahead of reporting
S&P 500 earnings are expected to grow close to 30%.
The third-quarter earnings season begins with elevated expectations. FactSet projects that S&P 500 earnings will grow 29.6% year over year and revenues 12.4%, which would mark the third consecutive quarter of earnings growth above 25%. In addition, analysts revised their estimates upward during the quarter, which is unusual, and a record 72 companies have issued positive guidance.
Valuations have moderated: the 12-month forward P/E is 19.1x, equal to its 10-year average and below the 20.4x recorded in June. However, growth is concentrated in energy (121.1%) and technology (65.1%), with semiconductors expected to rise 130%; excluding them, the technology sector would grow 24.4%. Companies tend to beat estimates, so the focus will be on Q4 guidance.
S&P 500 Earnings Growth Expectations (Y/Y): Q3 2026