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Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
The picture emerging from the Q1 earnings season is of continued strength and momentum, with companies not only comfortably beating consensus estimates but also providing a reassuring read on the economy despite elevated energy costs and other risks. The momentum is particularly notable on the revenues side, both in terms of the growth pace as well as the beats percentages.
Total Q1 earnings for the 86 S&P 500 companies that have already reported results are up +26.1% from the same period last year on +10.3% higher revenues, with 76.7% beating EPS estimates and an equal proportion beating revenue estimates.
The earnings and revenue growth rates, and revenue beat percentages, for these companies are notably above recent historical averages. The Q1 EPS beats percentage, however, is tracking below the 5-year average for this group of companies.
For the Finance sector, we now have Q1 results from 52.6% of the sector’s market capitalization in the S&P 500 index. Total earnings for these companies are up +24.7% from the same period last year on +12.4% higher revenues, with 76.7% beating EPS estimates and 63.3% beating revenue estimates. These Q1 results compare favorably with what we have seen from this same group of companies in other recent periods.
A Positive Earnings Picture
Boeing (BA - Free Report) , GE Vernova (GEV - Free Report) , and D.R. Horton (DHI - Free Report) are the latest companies across different sectors to report positive Q1 results and provide reassuring commentary for the current period.
The favorable Boeing report is somewhat reflective of company-specific factors, but it nevertheless speaks to an improving corporate profitability backdrop that we also saw in GE Vernova’s beat-and-raise release and D.R. Horton’s positive commentary. All of this is showing up in positive estimate revisions for the current period (2026 Q2), as the chart below shows.
Image Source: Zacks Investment Research
The sectors enjoying positive estimate revisions since the start of April include Energy, Tech, Basic Materials, Utilities, and Business Services. But Q2 estimates in the aggregate would be modestly down since the start of the period, had it not been for the substantial increase in Energy sector estimates.
The chart below shows S&P 500 expectations for 2026 Q1 in terms of what was achieved in the preceding four periods and what is currently expected for the following three quarters.
Image Source: Zacks Investment Research
The chart below shows the overall earnings picture for the S&P 500 index on an annual basis.
Image Source: Zacks Investment Research
An interesting development on the revisions front has been the evolution of full-year 2026 estimates since the start of the Iran war. No surprises in the trend reversal in Energy sector estimates since the start of March, but estimates for 8 other sectors have also moved higher in that time period. The Tech sector’s positive revisions trend has continued in this period, while the revisions trends for the Basic Materials and Consumer Staples sectors shifted from negative to positive since the start of March.
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Earnings Picture Remains Positive: A Closer Look
Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
A Positive Earnings Picture
Boeing (BA - Free Report) , GE Vernova (GEV - Free Report) , and D.R. Horton (DHI - Free Report) are the latest companies across different sectors to report positive Q1 results and provide reassuring commentary for the current period.
The favorable Boeing report is somewhat reflective of company-specific factors, but it nevertheless speaks to an improving corporate profitability backdrop that we also saw in GE Vernova’s beat-and-raise release and D.R. Horton’s positive commentary. All of this is showing up in positive estimate revisions for the current period (2026 Q2), as the chart below shows.
Image Source: Zacks Investment Research
The sectors enjoying positive estimate revisions since the start of April include Energy, Tech, Basic Materials, Utilities, and Business Services. But Q2 estimates in the aggregate would be modestly down since the start of the period, had it not been for the substantial increase in Energy sector estimates.
The chart below shows S&P 500 expectations for 2026 Q1 in terms of what was achieved in the preceding four periods and what is currently expected for the following three quarters.
Image Source: Zacks Investment Research
The chart below shows the overall earnings picture for the S&P 500 index on an annual basis.
Image Source: Zacks Investment Research
An interesting development on the revisions front has been the evolution of full-year 2026 estimates since the start of the Iran war. No surprises in the trend reversal in Energy sector estimates since the start of March, but estimates for 8 other sectors have also moved higher in that time period. The Tech sector’s positive revisions trend has continued in this period, while the revisions trends for the Basic Materials and Consumer Staples sectors shifted from negative to positive since the start of March.