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: Amazon and Tesla
Read MoreHide Full Article
For Immediate Release
Chicago, IL – March 5, 2026 – Zacks Director of Research Sheraz Mian says, "For 2026 Q1, total S&P 500 earnings are currently expected to increase by +11.3% from the same period last year on +8.4% higher revenues."
Looking Ahead to Q1 Earnings Season
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 the end-point of the 2025 Q4 earnings season approaching, we can confidently claim that corporate profitability is not only strong but also showing clear signs of improvement in key aspects. The improvement is particularly notable with respect to the revisions trend, with earnings estimates for the current and coming periods steadily moving up.
For 2026 Q1, total S&P 500 earnings are currently expected to increase by +11.3% from the same period last year on +8.4% higher revenues.
The Tech sector has been a critical growth pillar since 2023 Q3 and is expected to play that role in 2026 Q1 as well, with expected earnings growth of +23.7%. Excluding the Tech sector’s substantial contribution, Q1 earnings growth for the rest of the S&P 500 index would be +5% (vs. +11.3% otherwise).
A total of 10 Zacks sectors are expected to enjoy positive earnings growth in 2026 Q1, including the Tech, Finance (+19%), Basic Materials (+14.6%), Autos (+12.9%), and Business Services (+7.3%) sectors.
A Favorable Revisions Trend, Driven by the Tech Sector
Elevated headline risks resulting from geopolitical turmoil have joined pre-existing worries about the future of software businesses and the seemingly ever-rising spending by the Mag 7 companies. Sentiment as a result has been downbeat on the Mag 7 and software stocks, as the year-to-date performance chart of the Mag 7 stocks, the Zacks Tech sector, the Zacks Finance sector, and the S&P 500 index shows.
There is a fair amount of overlap between the Mag 7 stocks and the Tech sector, but the Zacks industry classification system places two of the Mag 7 stocks – Amazon (AMZN - Free Report) and Tesla (TSLA - Free Report) – outside the Tech sector, with Amazon in the Zacks Retail sector and Tesla in the Zacks Auto sector.
The soft sentiment on the Mag 7 stocks and Tech sectors notwithstanding, these two spaces represent the most robust profitability centers in the entire S&P 500 index, with a steadily improving earnings outlook reflected in positive estimate revisions.
For 2026 Q1, the Zacks Tech sector is expected to produce +23.7% earnings growth on +21.2% higher revenues.
The Tech sector has been a critical pillar of aggregate earnings growth since 2023 Q3 and is expected to play that role in 2026 Q1 as well.
For Q1 as a whole, total S&P 500 earnings are expected to be up +11.3% from the same period last year. But the aggregate growth pace drops to +5% once the Tech sector’s contribution is excluded.
Even more importantly, estimates for the Tech sector are steadily going up, notwithstanding the aforementioned sentiment issues.
In fact, the positive revisions trend for the Tech sector has been key to keeping the aggregate revisions trend in positive territory, offsetting pressure on estimates elsewhere.
The Tech sector is one of the four sectors whose 2026 Q1 earnings estimates have increased since the start of October 2025; the other three sectors enjoying favorable revisions are Finance, Industrial Products, and Business Services.
The estimate revisions trend in the aggregate remains positive, even though there is plenty of churn at the sector level. Importantly, favorable revisions in the Tech and Finance sectors are helping offset pressures in other sectors.
Why Haven't You Looked at Zacks' Top Stocks?
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 access their live picks without cost or obligation.
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/performance for information about the performance numbers displayed in this press release.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Zacks Earnings Trends Highlights: Amazon and Tesla
For Immediate Release
Chicago, IL – March 5, 2026 – Zacks Director of Research Sheraz Mian says, "For 2026 Q1, total S&P 500 earnings are currently expected to increase by +11.3% from the same period last year on +8.4% higher revenues."
Looking Ahead to Q1 Earnings Season
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 Favorable Revisions Trend, Driven by the Tech Sector
Elevated headline risks resulting from geopolitical turmoil have joined pre-existing worries about the future of software businesses and the seemingly ever-rising spending by the Mag 7 companies. Sentiment as a result has been downbeat on the Mag 7 and software stocks, as the year-to-date performance chart of the Mag 7 stocks, the Zacks Tech sector, the Zacks Finance sector, and the S&P 500 index shows.
There is a fair amount of overlap between the Mag 7 stocks and the Tech sector, but the Zacks industry classification system places two of the Mag 7 stocks – Amazon (AMZN - Free Report) and Tesla (TSLA - Free Report) – outside the Tech sector, with Amazon in the Zacks Retail sector and Tesla in the Zacks Auto sector.
The soft sentiment on the Mag 7 stocks and Tech sectors notwithstanding, these two spaces represent the most robust profitability centers in the entire S&P 500 index, with a steadily improving earnings outlook reflected in positive estimate revisions.
For 2026 Q1, the Zacks Tech sector is expected to produce +23.7% earnings growth on +21.2% higher revenues.
The Tech sector has been a critical pillar of aggregate earnings growth since 2023 Q3 and is expected to play that role in 2026 Q1 as well.
For Q1 as a whole, total S&P 500 earnings are expected to be up +11.3% from the same period last year. But the aggregate growth pace drops to +5% once the Tech sector’s contribution is excluded.
Even more importantly, estimates for the Tech sector are steadily going up, notwithstanding the aforementioned sentiment issues.
In fact, the positive revisions trend for the Tech sector has been key to keeping the aggregate revisions trend in positive territory, offsetting pressure on estimates elsewhere.
The Tech sector is one of the four sectors whose 2026 Q1 earnings estimates have increased since the start of October 2025; the other three sectors enjoying favorable revisions are Finance, Industrial Products, and Business Services.
The estimate revisions trend in the aggregate remains positive, even though there is plenty of churn at the sector level. Importantly, favorable revisions in the Tech and Finance sectors are helping offset pressures in other sectors.
Why Haven't You Looked at Zacks' Top Stocks?
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 access their live picks without cost or obligation.
See Stocks Free >>
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/performance for information about the performance numbers displayed in this press release.