The third-quarter 2026 earnings season for the Business Services sector is progressing amid resilient economic activity, growing adoption of technology-enabled solutions and persistent cost pressures. Despite inflationary concerns and uncertainty surrounding business spending, sustained demand for essential services, data analytics and digital transformation is supporting the sector's performance.

Per the Earnings Outlook report dated Nov. 4, the Business Services sector's third-quarter 2026 earnings are expected to increase 12.7% year over year. The projection highlights the sector's favorable earnings momentum, although elevated expenses and uneven demand trends remain potential headwinds.

The broader economic environment has also remained supportive. According to the Bureau of Economic Analysis, real GDP grew at an annualized rate of 3.4% in the third quarter of 2026, accelerating from 2.2% in the preceding quarter. Higher investment, consumer spending and government expenditures contributed to the expansion.

Meanwhile, the Institute for Supply Management reported that the Services PMI registered 54.5% in October compared with 54.9% in September. Although the reading moderated, it marked the 28th consecutive month of expansion, reflecting continued resilience across service-oriented industries.

Omnichannel data-driven cloud platform Zeta Global (ZETA Quick QuoteZETA - Free Report) , public omnichannel marketplace and service provider RB Global (RBA Quick QuoteRBA - Free Report) and engineered components and systems provider ESCO Technologies (ESE Quick QuoteESE - Free Report) are scheduled to release their quarterly 2026 results. Before examining their earnings prospects, let's look at the factors likely to have influenced the broader Business Services sector's performance.

Factors at Play

The Business Services sector has benefited from sustained demand for technology-enabled solutions, operational efficiency and specialized services. Companies have increasingly invested in artificial intelligence, automation, data analytics and digital platforms to streamline operations, strengthen customer relationships and improve productivity. These developments are likely to have supported demand for information services, digital marketing solutions and business process optimization.

Economic resilience has provided another positive catalyst. The U.S. economy's 3.4% annualized growth in the third quarter reflects continued underlying strength despite inflationary pressures. Higher investment spending has likely supported demand for specialized business services, while resilient consumer activity has created opportunities for companies providing transaction processing, consumer intelligence and data-driven solutions.

The latest ISM Services PMI data also points toward sustained expansion. The New Orders Index registered 55.9% in October, although it declined from 59.8% in September. The Business Activity Index stood at 53.8%, down from 56.5% in the preceding month. These readings indicate that demand and business activity continued to expand, albeit at a slower pace, suggesting an uneven operating environment for service providers.

Employment conditions showed improvement, with the ISM Services Employment Index rising to 51.4% in October from 50.1% in September. The expansion suggests that companies continued to maintain or increase staffing levels to meet operational requirements. However, higher labor-related expenses could have constrained profitability for businesses dependent on personnel-intensive services.

Cost inflation remains a significant concern. The ISM Services Prices Index stood at 73% in October, indicating continued increases in input costs. Elevated compensation, technology infrastructure, transportation and other operating expenses are likely to have weighed on margins. Companies possessing pricing power, recurring revenue streams and effective cost-management strategies are better positioned to navigate these pressures.

Acquisitions, strategic partnerships and geographic expansion have also emerged as important growth drivers. Business services companies are increasingly pursuing complementary capabilities and wider market reach to strengthen their competitive positions. Nevertheless, integration expenses, execution challenges and increased investment requirements could have partially offset the benefits.

Overall, the Business Services sector's third-quarter performance is likely to reflect the interplay between resilient demand, accelerating technology adoption and persistent cost pressures. Companies with differentiated offerings, expanding customer relationships and disciplined operating expenses are relatively better positioned to deliver encouraging results.

What's in Store for ZETA, RBA and ESE?

Our proprietary model indicates that a company needs the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) — to increase the likelihood of an earnings beat. Investors can identify potential earnings outperformers using our Earnings ESP Filter.

Zeta Global is scheduled to report third-quarter 2026 earnings on Nov. 9, after the bell. Our proven model does not conclusively predict an earnings beat for ZETA this time, as the stock has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can see the complete list of today's Zacks #1 Rank stocks here.

Increasing adoption of Zeta's AI-powered Athena platform is expected to have supported customer engagement, enterprise expansion and platform utilization in the quarter. Partnerships with OpenAI, Palantir and Snowflake are likely to have strengthened its enterprise capabilities, creating opportunities for customer acquisition and cross-selling. The One Zeta initiative and Marigold integration may have further supported customer expansion. Nevertheless, expenses associated with technology development, platform investments and integration activities could have partially offset the benefits of revenue growth.

The Zacks Consensus Estimate for ZETA's third-quarter revenues is pegged at $470.5 million, indicating year-over-year growth of 39.5%. The consensus estimate for earnings stands at 28 cents per share, suggesting a 27.3% increase from the year-ago quarter's actual. Zeta Global surpassed earnings estimates in each of the trailing four quarters, delivering an average surprise of 12.6%.

Zeta Global Holdings Corp. Price and EPS Surprise

Zeta Global Holdings Corp. price-eps-surprise | Zeta Global Holdings Corp. Quote

RB Global is scheduled to report third-quarter 2026 results on Nov. 9, before the bell. The company's earnings prospects appear favorable, supported by expectations of year-over-year earnings and revenue growth. Our proven model does not predict an earnings beat for RBA this time, as the stock has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.

RB Global's marketplace operations, including Ritchie Bros. and IAA, are expected to have benefited from demand for commercial equipment, vehicles and asset disposition services. Its expanding digital marketplace capabilities, diversified transaction services and recurring customer relationships may have supported business activity. Nevertheless, fluctuations in auction volumes, operating expenses and economic uncertainty could have weighed on its performance.

The available third-party consensus estimate for RBA's third-quarter earnings is pegged at 99 cents per share, suggesting growth of approximately 6.5% from the year-ago quarter's actual. Revenues are expected to reach $1.17 billion, indicating year-over-year growth of 7.1%. RB Global surpassed earnings expectations in each of the trailing four quarters, delivering an average surprise of 8.3%.

RB Global, Inc. Price and EPS Surprise

RB Global, Inc. price-eps-surprise | RB Global, Inc. Quote

ESCO Technologies is scheduled to report fourth-quarter fiscal 2026 results on Nov. 19. Our proven model predicts a likely earnings beat for ESE this time, as the stock has an Earnings ESP of +0.96% and a Zacks Rank #3 at present.

The company's exposure to aerospace, defense, utility and industrial markets is expected to have supported its performance. Healthy demand for specialized engineered products, expanding defense-related opportunities and operational efficiency initiatives may have contributed to revenue growth and profitability. Nevertheless, higher operating expenses and project execution challenges could have partially offset these benefits.

The Zacks Consensus Estimate for ESE's fourth-quarter fiscal 2026 revenues is pegged at $375.4 million, indicating year-over-year growth of 6.5%. The consensus estimate for earnings stands at $2.59 per share, suggesting an 11.6% increase from the year-ago quarter's actual. ESCO Technologies surpassed the earnings consensus estimate by 3.8% in the preceding quarter.

ESCO Technologies Inc. Price and EPS Surprise

ESCO Technologies Inc. price-eps-surprise | ESCO Technologies Inc. Quote