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Zacks Earnings Trends Highlights: GE Healthcare, Honeywell and Southwest Airlines
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For Immediate Release
Chicago, IL – April 30, 2026– Zacks Director of Research Sheraz Mian says, "The Q1 earnings season continues to show 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."
A Strong & Steadily Improving Earnings Picture
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 Q1 earnings season continues to show 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 221 S&P 500 companies that have already reported results are up +22.3% from the same period last year on +10.1% higher revenues, with 77.8% beating EPS estimates and an equal proportion beating revenue estimates.
Nvidia and Micron are material contributors to the Tech sector's growth profile in 2026 Q1 and the coming quarters. Excluding the contribution from these two semiconductor players, Q1 earnings growth for the rest of the Zacks Tech sector drops to +12.6% (from +29.7%).
Q1 earnings for the 'Magnificent 7' group of companies are expected to be up +20.2% from the same period last year on +22.2% higher revenues. Excluding the 'Mag 7' contribution, Q4 earnings for the rest of the index would be up only +13.2% (vs. +14.9%).
A Steadily Improving Earnings Outlook
The overall earnings picture emerging from the Q1 earnings season continues to be not only strong but steadily improving as well. This favorable earnings backdrop is showing up in the revisions trend, which we show in a chart nearby.
We are also starting to see the earnings impact of renewed cost pressures as a result of high oil prices and the associated impact on freight in a variety of industries, particularly if they are unable to offset the cost increases through price hikes. The cases of GE Healthcare (GEHC - Free Report) ),Honeywell (HON - Free Report) , Southwest Airlines (LUV - Free Report) and others spotlight this new trend, which will likely be even more front-and-center when the Q1 reporting cycle shifts to the retail sector in the coming days.
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.
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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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.
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Zacks Earnings Trends Highlights: GE Healthcare, Honeywell and Southwest Airlines
For Immediate Release
Chicago, IL – April 30, 2026– Zacks Director of Research Sheraz Mian says, "The Q1 earnings season continues to show 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."
A Strong & Steadily Improving Earnings Picture
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 Steadily Improving Earnings Outlook
The overall earnings picture emerging from the Q1 earnings season continues to be not only strong but steadily improving as well. This favorable earnings backdrop is showing up in the revisions trend, which we show in a chart nearby.
We are also starting to see the earnings impact of renewed cost pressures as a result of high oil prices and the associated impact on freight in a variety of industries, particularly if they are unable to offset the cost increases through price hikes. The cases of GE Healthcare (GEHC - Free Report) ), Honeywell (HON - Free Report) , Southwest Airlines (LUV - Free Report) and others spotlight this new trend, which will likely be even more front-and-center when the Q1 reporting cycle shifts to the retail sector in the coming days.
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.
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.
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 >>
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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.