Earnings Season: Resilient Growth Amid Adjustments

S&P 500 earnings rise amid uncertainty.

Key points from Q1 2025 earnings season 

By the end of Q1 2025, analysts have adjusted their earnings expectations. Although the estimated growth has dropped to 7.3% year-over-year from 11.7% at the end of December, the S&P 500 is still on track for its seventh consecutive quarter of expansion. Additionally, revenue growth is expected to reach 4.2%, with net margins at 12.1%. 

The technology, healthcare, and utilities sectors lead earnings growth, while energy and materials decline. Despite current economic uncertainty, corporate performance continues to show positive signs, which could translate into an 11.5% earnings growth for the full year. 

Market implications: 
With the first quarter closing amid volatility due to the potential effects of tariff implementation, investors will turn their attention to the upcoming earnings season. 

S&P 500 year-over-year earnings growth: Q1 2025 

Source: FactSet