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The bulk of the Q3 earnings season is now behind us, with results from only about 12% of S&P 500 members still to come at this stage. This week brings results from more than 700 companies, including 12 index members. The notable companies reporting this week include Applied Materials, Cisco Systems and Berkshire Hathaway, to name just three.
The picture that emerged out of this earnings season is one of broad-based growth momentum. While the growth pace remains strong, it does not compare favorably with other recent periods, particularly when some of the outlier results are excluded. Most importantly, the revisions trend remains positive, with estimates for 2026 Q4 and full-year 2027 continuing to rise.
Looking at overall expectations for the quarter, combining the actual results from the 441 S&P 500 members that have reported already (through Friday, November 6th) with estimates for the still-to-come companies, Q3 earnings are currently expected to increase by +28.4% from the same period last year on +14.4% higher revenues, the 8th straight quarter of double-digit earnings growth for the index.
The Tech sector continues to be a major growth contributor, but the momentum is broad-based, with 15 of the 16 Zacks sectors on track to enjoy positive earnings growth and 9 generating double-digit earnings growth in Q3.
As noted earlier, the revisions trend has been positive, sustaining the favorable trend in place for almost a year. Estimates for Q3 increased after the quarter got underway, and we are seeing a similar trend at play for 2026 Q4 estimates. We should note, however, that the latest development on this front is negative, with estimates over the preceding week losing some ground.
Since the start of October, Q4 estimates have declined for 12 of the 16 Zacks sectors, with only four sectors enjoying positive estimate revisions. These four sectors are Energy, Tech, Finance, and Conglomerates. Excluding the Energy sector's substantial contribution, the index's aggregate revisions trend would have been negative.
The notable sectors suffering negative estimate revisions since the start of October include Transportation, Autos, Consumer Staples, Construction, and others.
We should note that while Q4 estimates have moved higher in the aggregate since the quarter got underway, the magnitude and breadth of positive revisions are weaker than in the comparable period for Q3.
Sector Focus: Broad-Based Strength
The 9 sectors expected to enjoy double-digit earnings growth in Q3 are Aerospace (up +157%), Energy (+147.9%), Tech (+45.4%), Basic Materials (+34.4%), Transportation (+10.5%), Industrial Products (+18.4%), Consumer Discretionary (+18.5%), Utilities (+14.7%), and Business Services (+12.5%).
Q3 earnings growth for the S&P 500 index drops to +23% from +28.4% once the Energy sector’s contribution is excluded from the index. Excluding the Tech sector, Q3 earnings growth for the rest of the index drops to +19.4%. Excluding both the Tech and Energy sectors, Q3 earnings for the rest of the index would be up +10.2% on +7.2% higher revenues.
For the Mag 7 group, we have actual results from 6 members, with Nvidia as the only member left to report on November 17th. Looking at expectations for the Mag 7 as a whole, combining actual results from the 6 members that have reported with estimates for Nvidia, total Q3 earnings for the Mag 7 are expected to increase by +17.3% on +23.5% higher revenues.
Excluding the Mag 7 group’s contribution, Q3 earnings for the rest of the index would actually improve to +32.2% (from +28.4%).
The Q3 earnings growth rate drops to +29.5% from +45.4% once the substantial contributions from Nvidia, Micron and Alphabet are excluded.
Q3 Earnings Season Scorecard
Through Friday, November 6th, we have seen Q3 results from 441 S&P 500 members, or 88.2% of the index’s total membership. Total earnings for these companies are up +24.8% from the same period last year on +13.4% higher revenues, with 82.1% beating EPS estimates and 74.6% beating revenue estimates.
The very strong earnings and revenue growth pace for this group of 441 S&P 500 members is mostly due to Micron, whose Q3 earnings increased +1075.7% from the year-earlier level. Alphabet’s results in the preceding period benefited from a large unrealized gain. Excluding the Micron and Alphabet contributions, Q3 earnings for the remaining index members that have reported would be up +21.5%.
The Earnings Big Picture
Nvidia, Micron, and Alphabet have substantial weightage in the annual earnings growth pace for the index as a whole.
As we noted earlier, estimates for full-year 2027areexperiencing the same positive and broad-based revisions trend that we noted earlier in the context of 2026 Q4.
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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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Applied Materials, Cisco, Berkshire Hathaway, Nvidia, Micron and Alphabet are part of Zacks Earnings Preview
For Immediate Release
Chicago, IL – November 9, 2026 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Applied Materials (AMAT - Free Report) , Cisco Systems (CSCO - Free Report) , Berkshire Hathaway (BRK.B - Free Report) , Nvidia (NVDA - Free Report) , Micron (MU - Free Report) and Alphabet (GOOGL - Free Report) .
Q3 Earnings Update: Broad-Based Growth, Key Sector Outliers, and What's Ahead
The bulk of the Q3 earnings season is now behind us, with results from only about 12% of S&P 500 members still to come at this stage. This week brings results from more than 700 companies, including 12 index members. The notable companies reporting this week include Applied Materials, Cisco Systems and Berkshire Hathaway, to name just three.
The picture that emerged out of this earnings season is one of broad-based growth momentum. While the growth pace remains strong, it does not compare favorably with other recent periods, particularly when some of the outlier results are excluded. Most importantly, the revisions trend remains positive, with estimates for 2026 Q4 and full-year 2027 continuing to rise.
Looking at overall expectations for the quarter, combining the actual results from the 441 S&P 500 members that have reported already (through Friday, November 6th) with estimates for the still-to-come companies, Q3 earnings are currently expected to increase by +28.4% from the same period last year on +14.4% higher revenues, the 8th straight quarter of double-digit earnings growth for the index.
The Tech sector continues to be a major growth contributor, but the momentum is broad-based, with 15 of the 16 Zacks sectors on track to enjoy positive earnings growth and 9 generating double-digit earnings growth in Q3.
As noted earlier, the revisions trend has been positive, sustaining the favorable trend in place for almost a year. Estimates for Q3 increased after the quarter got underway, and we are seeing a similar trend at play for 2026 Q4 estimates. We should note, however, that the latest development on this front is negative, with estimates over the preceding week losing some ground.
Since the start of October, Q4 estimates have declined for 12 of the 16 Zacks sectors, with only four sectors enjoying positive estimate revisions. These four sectors are Energy, Tech, Finance, and Conglomerates. Excluding the Energy sector's substantial contribution, the index's aggregate revisions trend would have been negative.
The notable sectors suffering negative estimate revisions since the start of October include Transportation, Autos, Consumer Staples, Construction, and others.
We should note that while Q4 estimates have moved higher in the aggregate since the quarter got underway, the magnitude and breadth of positive revisions are weaker than in the comparable period for Q3.
Sector Focus: Broad-Based Strength
The 9 sectors expected to enjoy double-digit earnings growth in Q3 are Aerospace (up +157%), Energy (+147.9%), Tech (+45.4%), Basic Materials (+34.4%), Transportation (+10.5%), Industrial Products (+18.4%), Consumer Discretionary (+18.5%), Utilities (+14.7%), and Business Services (+12.5%).
Q3 earnings growth for the S&P 500 index drops to +23% from +28.4% once the Energy sector’s contribution is excluded from the index. Excluding the Tech sector, Q3 earnings growth for the rest of the index drops to +19.4%. Excluding both the Tech and Energy sectors, Q3 earnings for the rest of the index would be up +10.2% on +7.2% higher revenues.
For the Mag 7 group, we have actual results from 6 members, with Nvidia as the only member left to report on November 17th. Looking at expectations for the Mag 7 as a whole, combining actual results from the 6 members that have reported with estimates for Nvidia, total Q3 earnings for the Mag 7 are expected to increase by +17.3% on +23.5% higher revenues.
Excluding the Mag 7 group’s contribution, Q3 earnings for the rest of the index would actually improve to +32.2% (from +28.4%).
The Q3 earnings growth rate drops to +29.5% from +45.4% once the substantial contributions from Nvidia, Micron and Alphabet are excluded.
Q3 Earnings Season Scorecard
Through Friday, November 6th, we have seen Q3 results from 441 S&P 500 members, or 88.2% of the index’s total membership. Total earnings for these companies are up +24.8% from the same period last year on +13.4% higher revenues, with 82.1% beating EPS estimates and 74.6% beating revenue estimates.
The very strong earnings and revenue growth pace for this group of 441 S&P 500 members is mostly due to Micron, whose Q3 earnings increased +1075.7% from the year-earlier level. Alphabet’s results in the preceding period benefited from a large unrealized gain. Excluding the Micron and Alphabet contributions, Q3 earnings for the remaining index members that have reported would be up +21.5%.
The Earnings Big Picture
Nvidia, Micron, and Alphabet have substantial weightage in the annual earnings growth pace for the index as a whole.
As we noted earlier, estimates for full-year 2027areexperiencing the same positive and broad-based revisions trend that we noted earlier in the context of 2026 Q4.
For a detailed view of the evolving earnings picture, please check out our weekly Earnings Trends report here >>>> Q3 Earnings Scorecard: Solid Beats, Upward Revisions, and AI Drivers
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.
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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.