We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Total earnings for reported S&P 500 companies are up +11.6% year-over-year on +5.9% revenue growth.
We are on track for a new all-time quarterly record for the aggregate Q2 earnings total for the S&P 500 index.
The outlook for the current and coming quarters has continued to improve.
As we head into the final phase of the Q2 earnings season, we can say with complete confidence that the overall earnings picture remains strong and resilient. Even more importantly, the outlook for the current and coming quarters has clearly started improving, with the favorable revisions trend particularly notable for the Tech sector.
While we still have a few key Tech sector players among the 9% of S&P 500 members that are still to report results, the primary focus of the still-to-come reports will be on the retail space.
We have a couple of retail-centric companies, such as Advanced Auto Parts (AAP - Free Report) and Birkenstock (BIRK - Free Report) , on deck to report this week, but the bulk of the sector results will start coming out the following week.
Here are the three key takeaways from the Q2 earnings season.
First, we saw an above-average proportion of companies beat Q2 EPS and revenue estimates, with the beats percentage particularly notable on the revenues side.
Through Friday, August 8th, we have seen Q2 results from 455 S&P 500 members, or 91% of the index’s total membership. Total earnings for these companies are up +11.6% from the same period last year on +5.9% revenue growth, with 80.4% beating EPS estimates and 79.1% beating revenue estimates.
This is a notably better performance relative to what we have seen from this group of index members in other recent periods, as the comparison charts below show.
Image Source: Zacks Investment Research
The comparison charts below show the Q2 earnings revenue growth pace for the 455 index members that have already reported results.
Image Source: Zacks Investment Research
As you can see above, the revenue performance is particularly notable.
Second, we are on track for a new all-time quarterly record for the aggregate Q2 earnings total for the S&P 500 index, surpassing the previous record set in 2024 Q4.
Looking at Q2 as a whole, combining the actual results from the 455 index members that have reported already with estimates for the still-to-come 45 companies, total S&P 500 earnings are expected to be up +12.1% from the same period last year on +6.2% higher revenues.
The Q2 earnings growth rate improves to +13.9% when the Energy sector’s drag is removed from the results and weakens to +8.5% when the Tech sector’s substantial contribution is excluded from the aggregate numbers.
The aggregate dollar total for Q2 is a new all-time quarterly record, as the chart below shows.
Image Source: Zacks Investment Research
As you can see above, aggregate earnings are on track to reach $582 billion, up from $556.2 billion in the preceding period, $519.3 billion in the year-earlier quarter, and the previous record of $573.6 billion in 2024 Q4.
Third, the revisions trend has turned positive, with the trend particularly notable for the Tech sector.
For the current period (2025 Q3), the expectation today is for earnings growth of +5.1% for the S&P 500 index on +5.6% higher revenues.
The chart below shows how Q3 earnings growth expectations have evolved in recent weeks.
Image Source: Zacks Investment Research
You can also see above how Q3 estimates have evolved since the start of July.
Since the start of July, Q3 estimates have increased for 6 of the 16 Zacks sectors, with the biggest gains for the Tech, Finance, Energy, and Retail sectors.
On the negative side, Q3 estimates have declined for the remaining 10 sectors since the start of the period, with the biggest declines for the Medical, Transportation, Basic Materials, Construction, and Auto sectors.
For the Tech sector, Q3 earnings are currently expected to be up +10.4% from the same period last year on +11.5% higher revenues. The chart below shows how the sector’s Q3 earnings growth expectations have evolved since the quarter got underway.
Image Source: Zacks Investment Research
The Earnings Big Picture
The chart below shows current Q2 earnings and revenue growth expectations in the context of the preceding four quarters and the coming four quarters.
Image Source: Zacks Investment Research
The chart below shows the overall earnings picture on a calendar-year basis.
Image Source: Zacks Investment Research
In terms of S&P 500 index ‘EPS’, these growth rates approximate to $257.35 for 2025 and $289.35 for 2026.
The chart below shows how these calendar year 2025 earnings growth expectations have evolved since the start of Q2. As you can see below, estimates fell sharply at the start of the quarter, which coincided with the tariff announcements, but have started going back up lately.
Image: Bigstock
3 Key Takeaways from the Q2 Earnings Season
Key Takeaways
As we head into the final phase of the Q2 earnings season, we can say with complete confidence that the overall earnings picture remains strong and resilient. Even more importantly, the outlook for the current and coming quarters has clearly started improving, with the favorable revisions trend particularly notable for the Tech sector.
While we still have a few key Tech sector players among the 9% of S&P 500 members that are still to report results, the primary focus of the still-to-come reports will be on the retail space.
We have a couple of retail-centric companies, such as Advanced Auto Parts (AAP - Free Report) and Birkenstock (BIRK - Free Report) , on deck to report this week, but the bulk of the sector results will start coming out the following week.
Here are the three key takeaways from the Q2 earnings season.
First, we saw an above-average proportion of companies beat Q2 EPS and revenue estimates, with the beats percentage particularly notable on the revenues side.
Through Friday, August 8th, we have seen Q2 results from 455 S&P 500 members, or 91% of the index’s total membership. Total earnings for these companies are up +11.6% from the same period last year on +5.9% revenue growth, with 80.4% beating EPS estimates and 79.1% beating revenue estimates.
This is a notably better performance relative to what we have seen from this group of index members in other recent periods, as the comparison charts below show.
Image Source: Zacks Investment Research
The comparison charts below show the Q2 earnings revenue growth pace for the 455 index members that have already reported results.
Image Source: Zacks Investment Research
As you can see above, the revenue performance is particularly notable.
Second, we are on track for a new all-time quarterly record for the aggregate Q2 earnings total for the S&P 500 index, surpassing the previous record set in 2024 Q4.
Looking at Q2 as a whole, combining the actual results from the 455 index members that have reported already with estimates for the still-to-come 45 companies, total S&P 500 earnings are expected to be up +12.1% from the same period last year on +6.2% higher revenues.
The Q2 earnings growth rate improves to +13.9% when the Energy sector’s drag is removed from the results and weakens to +8.5% when the Tech sector’s substantial contribution is excluded from the aggregate numbers.
The aggregate dollar total for Q2 is a new all-time quarterly record, as the chart below shows.
Image Source: Zacks Investment Research
As you can see above, aggregate earnings are on track to reach $582 billion, up from $556.2 billion in the preceding period, $519.3 billion in the year-earlier quarter, and the previous record of $573.6 billion in 2024 Q4.
Third, the revisions trend has turned positive, with the trend particularly notable for the Tech sector.
For the current period (2025 Q3), the expectation today is for earnings growth of +5.1% for the S&P 500 index on +5.6% higher revenues.
The chart below shows how Q3 earnings growth expectations have evolved in recent weeks.
Image Source: Zacks Investment Research
You can also see above how Q3 estimates have evolved since the start of July.
Since the start of July, Q3 estimates have increased for 6 of the 16 Zacks sectors, with the biggest gains for the Tech, Finance, Energy, and Retail sectors.
On the negative side, Q3 estimates have declined for the remaining 10 sectors since the start of the period, with the biggest declines for the Medical, Transportation, Basic Materials, Construction, and Auto sectors.
For the Tech sector, Q3 earnings are currently expected to be up +10.4% from the same period last year on +11.5% higher revenues. The chart below shows how the sector’s Q3 earnings growth expectations have evolved since the quarter got underway.
Image Source: Zacks Investment Research
The Earnings Big Picture
The chart below shows current Q2 earnings and revenue growth expectations in the context of the preceding four quarters and the coming four quarters.
Image Source: Zacks Investment Research
The chart below shows the overall earnings picture on a calendar-year basis.
Image Source: Zacks Investment Research
In terms of S&P 500 index ‘EPS’, these growth rates approximate to $257.35 for 2025 and $289.35 for 2026.
The chart below shows how these calendar year 2025 earnings growth expectations have evolved since the start of Q2. As you can see below, estimates fell sharply at the start of the quarter, which coincided with the tariff announcements, but have started going back up lately.
Image Source: Zacks Investment Research
For a detailed view of the evolving earnings picture, please check out our weekly Earnings Trends report here >>>> Earnings Outlook Steadily Improves: Mag 7 Earnings Loom