The outlook for S&P 500 earnings has shown improvement, with projections indicating a +7.9% increase in total earnings for Q4 2025 compared to the same period in 2024. Revenues are expected to rise by +8.2%. This marks the 10th consecutive quarter of positive earnings growth for the index.
For the entirety of 2026, S&P 500 earnings are forecasted to grow by +12.9%, with all 16 Zacks sectors expected to achieve positive earnings growth. Notably, sectors such as Aerospace (+38.2%) and Technology (+19.9%) are anticipated to lead with double-digit growth. The “Magnificent 7” companies, including NVIDIA, Apple, and Tesla, are projected to see a +17.3% increase in Q4 earnings.
The Tech sector remains a significant contributor to this growth, with Q4 earnings expected to rise +15.4% on +16.3% higher revenues. This continuing growth trend in technology underlines its critical role in the overall earnings landscape, as it accounts for 35.9% of the S&P 500’s total earnings.
