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Chicago, IL – June 4, 2026– Zacks Director of Research Sheraz Mian says, "We saw positive momentum on the revisions front in Q1 earnings results, with estimates for the current and upcoming quarters rising."
Looking Ahead to Q2 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:
The overall earnings picture remains strong and broad-based. We saw that in the last earnings season, when companies not only comfortably beat consensus estimates but also provided reassuring reads on the economy despite elevated energy costs and other risks. We also saw positive momentum on the revisions front, with estimates for the current and upcoming quarters rising.
Total Q2 earnings for the S&P 500 index are currently expected to be up +21.2% from the same period last year on +10.7% higher revenues, with 11 of the 16 Zacks sectors expected to enjoy positive earnings growth.
Q2 earnings estimates have been steadily going up since the quarter got underway, with the current +21.2% up from +18% at the start of April. Estimates have increased for 5 of the 16 Zacks sectors, including Tech, Energy, Basic Materials, Utilities, and Business Services.
The Tech sector has been a critical growth pillar since 2023 Q3, and it is expected to continue playing that role in 2026 Q2, with earnings growth +42%. Excluding the Tech sector’s substantial contribution, Q2 earnings growth for the rest of the S&P 500 index would be +11.3% (vs. +21.2% otherwise).
The Revisions Trend Remains Positive
We should note that Q2 estimates have modestly declined in recent days, even though the overall revisions trend remains positive.
The sectors enjoying positive estimate revisions since the start of April include Energy, Tech, Basic Materials, Industrials, 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 increase in Energy and Tech sector estimates.
The Tech sector has been enjoying positive estimate revisions for more than a year now, so the sector’s positive revisions trend is basically more of the same. We have discussed in this space the positive revisions that the Mag 7 group has been experiencing. The Energy sector’s improved earnings outlook is a direct result of the Iran war, as is the upgraded earnings outlook for parts of the Basic Materials sector, particularly the Chemicals industry.
Take, for example, the evolution of Q2 EPS estimates for Dow (DOW - Free Report) , LyondellBasell Industries (LYB - Free Report) , Methanex (MEOH - Free Report) and others. For Dow and LyondellBasell, the Zacks Consensus EPS estimates for Q2 have more than doubled over the past month, while the same for Methanex has increased by more than 30%.
On the negative side, Q2 estimates have come under renewed pressure since the start of the period for the Transportation, Autos, Medical, and Consumer Discretionary sectors.
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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/performance for information about the performance numbers displayed in this press release.
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Zacks Earnings Trends Highlights: Dow, LyondellBasell Industries, Methanex
For Immediate Release
Chicago, IL – June 4, 2026– Zacks Director of Research Sheraz Mian says, "We saw positive momentum on the revisions front in Q1 earnings results, with estimates for the current and upcoming quarters rising."
Looking Ahead to Q2 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:
The Revisions Trend Remains Positive
We should note that Q2 estimates have modestly declined in recent days, even though the overall revisions trend remains positive.
The sectors enjoying positive estimate revisions since the start of April include Energy, Tech, Basic Materials, Industrials, 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 increase in Energy and Tech sector estimates.
The Tech sector has been enjoying positive estimate revisions for more than a year now, so the sector’s positive revisions trend is basically more of the same. We have discussed in this space the positive revisions that the Mag 7 group has been experiencing. The Energy sector’s improved earnings outlook is a direct result of the Iran war, as is the upgraded earnings outlook for parts of the Basic Materials sector, particularly the Chemicals industry.
Take, for example, the evolution of Q2 EPS estimates for Dow (DOW - Free Report) , LyondellBasell Industries (LYB - Free Report) , Methanex (MEOH - Free Report) and others. For Dow and LyondellBasell, the Zacks Consensus EPS estimates for Q2 have more than doubled over the past month, while the same for Methanex has increased by more than 30%.
On the negative side, Q2 estimates have come under renewed pressure since the start of the period for the Transportation, Autos, Medical, and Consumer Discretionary 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 >>
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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/performance for information about the performance numbers displayed in this press release.