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.
Zacks Earnings Trends Highlights: Gartner, Adobe and Accenture
Read MoreHide Full Article
For Immediate Release
Chicago, IL – February 5, 2026– Zacks Director of Research Sheraz Mian says, "Total earnings for the 236 S&P 500 members that have reported Q4 results are up +12.6% from the same period last year on +8.2% higher revenues."
Earnings Outlook Improves: 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:
The picture emerging from the Q4 earnings season is one of a steadily improving earnings outlook that is starting to show up in a favorable estimate revisions trend. Estimates are not only increasing for the Tech sector but also for some economically sensitive sectors, such as Basic Materials and Industrials.
Total earnings for the 236 S&P 500 members that have reported Q4 results are up +12.6% from the same period last year on +8.2% higher revenues, with 81.8% beating EPS estimates and 70.8% beating revenue estimates.
The Q4 earnings and revenue growth pace at this stage represent a clear acceleration from what we had seen from this group of companies in other recent periods. Positive beats were earlier tracking below historical averages, but have now moved in line with those levels.
For the Tech sector, we now have 2025 Q4 results from 51.5% of the sector's market capitalization in the S&P 500 index. Total earnings for these Tech companies are up +16.6% from the same period last year on +16.1% higher revenues, with 92.7% beating EPS estimates and 90.2% beating revenue estimates. This is a notably better performance from these Tech companies relative to other recent periods.
The Evolving Tech Sector Earnings Picture
Regular readers are well aware of the Tech sector's critical role in the aggregate earnings growth picture. In fact, the sector has been a key driver of aggregate earnings growth since the second quarter of 2023. This followed a roughly six-quarter period starting in 2022 Q1, when the sector had become a growth drag. Not only has the Tech sector been producing impressive earnings growth, but the sector has also been consistently enjoying a favorable estimates revision trend for some time now.
The Tech sector's strong earnings profile has provided the fundamental underpinning for the group's positive stock market momentum. But not all Tech stocks have been thriving lately, with software stocks in particular struggling in the market.
A case in point is the recent Gartner (IT - Free Report) quarterly release, in which it beat EPS and revenue estimates but provided subpar guidance. Artificial intelligence-centric disruption and disintermediation worries had already been weighing on Gartner shares, and the company's weak guidance added to those worries. This is the third quarter in a row that Gartner has disappointed the market with its earnings results, which is on full display in the stock's -71% decline in the trailing 12-month period.
Gartner isn't technically a software player like Adobe (ADBE - Free Report) but rather a provider of information technology consulting services, like Accenture (ACN - Free Report) . While market participants see downside risks to both the legacy software and IT consulting business models, sentiment is particularly negative on the latter.
You can see this in the stock market performance of these stocks.
It is important to note that the recent underperformance of Tech software and consulting operators in the stock market primarily reflects current concerns, which have not yet resulted in consistent downward revisions of earnings estimates. Nevertheless, the most recent estimate revisions trend likely offers insights into the sector's earnings outlook.
Notwithstanding the cloudy outlook for the software industry, the outlook for the Tech sector as a whole remains unequivocally positive. You can see this in the chart below, which tracks the evolution of the aggregate 2026 earnings estimates for the sector.
The Earnings Big Picture
The Tech sector has an outsized role in the S&P 500 index. The sector is expected to bring 36.7% of the index's total earnings over the coming four-quarter period and currently accounts for 42.4% of the index's total market capitalization. The Tech sector's positive estimate revision trend is a major reason its members enjoy a strong market following and support.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks Earnings Trends Highlights: Gartner, Adobe and Accenture
For Immediate Release
Chicago, IL – February 5, 2026– Zacks Director of Research Sheraz Mian says, "Total earnings for the 236 S&P 500 members that have reported Q4 results are up +12.6% from the same period last year on +8.2% higher revenues."
Earnings Outlook Improves: 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:
The Evolving Tech Sector Earnings Picture
Regular readers are well aware of the Tech sector's critical role in the aggregate earnings growth picture. In fact, the sector has been a key driver of aggregate earnings growth since the second quarter of 2023. This followed a roughly six-quarter period starting in 2022 Q1, when the sector had become a growth drag. Not only has the Tech sector been producing impressive earnings growth, but the sector has also been consistently enjoying a favorable estimates revision trend for some time now.
The Tech sector's strong earnings profile has provided the fundamental underpinning for the group's positive stock market momentum. But not all Tech stocks have been thriving lately, with software stocks in particular struggling in the market.
A case in point is the recent Gartner (IT - Free Report) quarterly release, in which it beat EPS and revenue estimates but provided subpar guidance. Artificial intelligence-centric disruption and disintermediation worries had already been weighing on Gartner shares, and the company's weak guidance added to those worries. This is the third quarter in a row that Gartner has disappointed the market with its earnings results, which is on full display in the stock's -71% decline in the trailing 12-month period.
Gartner isn't technically a software player like Adobe (ADBE - Free Report) but rather a provider of information technology consulting services, like Accenture (ACN - Free Report) . While market participants see downside risks to both the legacy software and IT consulting business models, sentiment is particularly negative on the latter.
You can see this in the stock market performance of these stocks.
It is important to note that the recent underperformance of Tech software and consulting operators in the stock market primarily reflects current concerns, which have not yet resulted in consistent downward revisions of earnings estimates. Nevertheless, the most recent estimate revisions trend likely offers insights into the sector's earnings outlook.
Notwithstanding the cloudy outlook for the software industry, the outlook for the Tech sector as a whole remains unequivocally positive. You can see this in the chart below, which tracks the evolution of the aggregate 2026 earnings estimates for the sector.
The Earnings Big Picture
The Tech sector has an outsized role in the S&P 500 index. The sector is expected to bring 36.7% of the index's total earnings over the coming four-quarter period and currently accounts for 42.4% of the index's total market capitalization. The Tech sector's positive estimate revision trend is a major reason its members enjoy a strong market following and support.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.