As of July 31, 2023, over 61% of S&P 500 companies have reported Q2 earnings, revealing a total earnings increase of 46.7% year-over-year, alongside a revenue boost of 14.7%. Notable performances include more than 83% of companies beating EPS estimates and 76% surpassing revenue expectations. This week, an additional 136 S&P 500 companies are set to report, marking a pivotal point in the earnings season.
The “Magnificent Seven” group, which includes tech giants Microsoft, Amazon, and Alphabet, have reported a combined earnings growth of 85.5% and revenue increase of 27.5% compared to last year. Alphabet’s net income was significantly bolstered by a $77.4 billion unrealized gain from its SpaceX stake, leading to total earnings for the group to be skewed higher with this contribution.
Through the quarter, total S&P 500 earnings for Q2 are projected to rise 40.8% year-over-year, driven mainly by sectors such as Technology (+92.8%) and Energy (+128%). Excluding tech-related influences, overall earnings growth would drop to 15.9%. With another 1,200 companies set to release results shortly, the full landscape of Q2 earnings will further clarify corporate performance trends.
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