The Zacks Energy sector is projected to see significant earnings growth, expecting +7.6% growth for Q1 2026, up from +0.9% just a week prior. For the full year 2026, earnings expectations have risen to $127.2 billion, compared to $120.2 billion last week. The ongoing spike in oil prices is anticipated to moderate over the coming years, influencing these earnings estimates positively.
In the current earnings season, total earnings for 18 S&P 500 companies reporting results have surged +80.4% year-over-year, with 72.2% exceeding EPS estimates. This includes notable firms such as Nike, Oracle, and FedEx. Early expectations for the S&P 500’s overall earnings growth in Q1 2026 stand at +13.4% on +9% higher revenues.
Overall, the energy sector’s recent performance reflects a +29.4% year-to-date increase, contrasting with a -6% decline in the tech sector and a -4.1% drop in the S&P 500 index. The positive outlook hinges on the stabilization of energy markets amidst ongoing geopolitical tensions.
