S&P 500 earnings for 2026 Q1 are projected to increase by 11.3% year-over-year, driven by significantly higher revenues expected to rise by 8.4%. The Tech sector is anticipated to be a key contributor, with earnings growth estimated at 23.7%. Excluding Tech’s impact, overall earnings growth for the index would drop to 5%.
Positive earnings growth is expected across 10 Zacks sectors, including Finance (+19%), Basic Materials (+14.6%), and Autos (+12.9%). Despite some negative sentiment surrounding major technology stocks, the Tech sector remains a robust profitability center, with ongoing positive revisions in earnings estimates.
This performance reflects a broader trend of improving corporate profitability as the 2025 Q4 earnings season approaches, with key revisions in earnings estimates indicating a bullish outlook for upcoming quarters.
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