Earnings Season 

Technology leads revisions as markets anticipate another double-digit earnings quarter. Corporate earnings continue to surprise to the upside.

Q2 expectations point to another solid quarter

The second-quarter earnings season begins with stronger-than-usual expectations. Following a first quarter in which nearly 85% of S&P 500 companies exceeded earnings estimates, analysts have revised their Q2 forecasts upward, an uncommon trend at this stage of the quarter. Currently, S&P 500 earnings are expected to grow by more than 23% year over year in Q2, while revenue is projected to increase by more than 12%, driven primarily by the energy and technology sectors. Looking ahead, consensus expectations call for approximately 24.1% earnings growth for full-year 2026.

Corporate earnings growth continues to be led by the technology sector, where earnings revisions and positive corporate guidance have reached multi-year highs. While other sectors, such as energy, benefited during the second quarter from higher oil prices, digitalization, artificial intelligence, and demand for technology infrastructure have become the primary drivers of margin expansion and profit growth across the U.S. equity market.

Monitor

Source: FactSet