Earnings Growth in Q4 2025 Shows Positive Trend
As of January 29, 2026, 106 S&P 500 companies have reported Q4 earnings, showing a growth of 14.9% year-over-year, supported by a 7.9% increase in revenues. Notably, 76.4% of these companies surpassed EPS estimates, while 63.2% exceeded revenue forecasts. This marks a noticeable acceleration compared to prior periods, despite fewer companies beating estimates than the 20-quarter average.
The Tech sector continues to be a significant contributor, expected to account for nearly half of the S&P 500’s earnings growth in 2026. Earnings for major players in the Tech sector, referred to as the ‘Magnificent 7’, are projected to rise by 17.1% compared to the previous year, while overall Q4 earnings growth for the S&P 500 drops to 5.5% when excluding this group’s contributions.
