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Q3 Earnings Season Ramps Up, Outlook for Q4 and Full-Year 2027 Improve
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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:
With about 15% of the results in, the Q3 earnings season appears on track to show continuation of the broad-based strength that we have been seeing in the last few reporting cycles. While the growth pace remains strong, it does not compare favorably with other recent periods, particularly when the outlier numbers are excluded. On the positive side, the revisions trend remains positive, with estimates for 2026 Q4 and full-year 2027 continuing to rise.
Total Q3 earnings for the 77 S&P 500 members that have reported results already are up +36.4% from the same period last year on +11.6% higher revenues, with 83.1% beating EPS estimates and 67.5% beating revenue estimates. The proportion of these 77 index members beating both EPS and revenue estimates (the ‘blended’ beats percentage is 59.7%.
Micron (MU - Free Report) and Nvidia (NVDA - Free Report) continue to be material contributors to the Tech sector’s growth picture. Excluding Nvidia, Micron, and Alphabet (GOOGL - Free Report) , which enjoyed an outsized gain in the preceding period, Q3 earnings for the rest of the Tech sector would be up +18.7% (vs. +42.2% otherwise).
For 2026 Q4, the expectation is for earnings growth of +28.1% on +12.5% higher revenues, with 15 of the 16 Zacks sectors expected to enjoy positive earnings growth. Q4 estimates are steadily rising, with the current +28.1% earnings growth rate up from +26.6% at the start of October and +23.4% at the start of July.
Full-year 2027 earnings are expected to be above the 2026 level for 15 of the 16 Zacks sectors, with 11 sectors expected to enjoy double-digit growth. The Energy sector is the only sector that is currently expected to experience earnings decline in 2027 (-1.3%).
The Finance Sector Earnings Scorecard
We noted here last week how the market has been less than impressed with bank results thus far. With results from more than 50% of the sector’s market capitalization in the S&P 500 index, we have a fairly representative sample of results for the sector.
Total earnings for the 52% of the sector’s market capitalization in the index that have reported results are up +10.1% from the same period last year on +8.3% higher revenues, with 83.3% beating EPS estimates and 53.3% beating revenue estimates. The ‘blended’ beats percentage for these Finance sector companies is 46.7%.
The comparison charts below show how the sector’s reported Q3 earnings and revenue growth rates compare across other recent periods for the same group of companies.
Image Source: Zacks Investment Research
The Q3 revenue beats percentages for the sector are notably tracking lower relative to other recent periods and the lowest since 2025 Q1, as shown below.
Image Source: Zacks Investment Research
For Q3 as a whole, combining actual results with estimates for the remaining stocks, total Finance sector earnings are expected to increase +8.5% from the same period last year, on +6.4% higher revenues.
Image Source: Zacks Investment Research
The Earnings Big Picture
The chart below shows S&P 500 expectations for 2026 Q3, comparing what was achieved in the preceding four periods with what is currently expected for the following three quarters.
Image Source: Zacks Investment Research
We have been showing here how Q3 estimates moved higher since the quarter got underway. Below, we show how estimates for the last quarter of the year have evolved in recent weeks.
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
As is the case with estimates for 2026 Q4, estimates for full-year 2027 are also moving higher, as the chart below shows.
Image Source: Zacks Investment Research
Since the beginning of July, estimates for 2027 have increased for 10 of the 16 Zacks sectors, with Tech, Energy, Finance and Industrials leading the way.
We will see how this revisions trend evolves as companies report Q3 results and share updates on developments in their businesses.
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Image: Bigstock
Q3 Earnings Season Ramps Up, Outlook for Q4 and Full-Year 2027 Improve
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 Finance Sector Earnings Scorecard
We noted here last week how the market has been less than impressed with bank results thus far. With results from more than 50% of the sector’s market capitalization in the S&P 500 index, we have a fairly representative sample of results for the sector.
Total earnings for the 52% of the sector’s market capitalization in the index that have reported results are up +10.1% from the same period last year on +8.3% higher revenues, with 83.3% beating EPS estimates and 53.3% beating revenue estimates. The ‘blended’ beats percentage for these Finance sector companies is 46.7%.
The comparison charts below show how the sector’s reported Q3 earnings and revenue growth rates compare across other recent periods for the same group of companies.
Image Source: Zacks Investment Research
The Q3 revenue beats percentages for the sector are notably tracking lower relative to other recent periods and the lowest since 2025 Q1, as shown below.
Image Source: Zacks Investment Research
For Q3 as a whole, combining actual results with estimates for the remaining stocks, total Finance sector earnings are expected to increase +8.5% from the same period last year, on +6.4% higher revenues.
Image Source: Zacks Investment Research
The Earnings Big Picture
The chart below shows S&P 500 expectations for 2026 Q3, comparing what was achieved in the preceding four periods with what is currently expected for the following three quarters.
Image Source: Zacks Investment Research
We have been showing here how Q3 estimates moved higher since the quarter got underway. Below, we show how estimates for the last quarter of the year have evolved in recent weeks.
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
As is the case with estimates for 2026 Q4, estimates for full-year 2027 are also moving higher, as the chart below shows.
Image Source: Zacks Investment Research
Since the beginning of July, estimates for 2027 have increased for 10 of the 16 Zacks sectors, with Tech, Energy, Finance and Industrials leading the way.
We will see how this revisions trend evolves as companies report Q3 results and share updates on developments in their businesses.