The S&P 500 is projected to see a 12.8% increase in earnings for the first quarter of 2026 compared to the same period last year, alongside an 8.8% rise in revenues. This follows a 14% earnings growth with 9.1% higher revenues in the last quarter of 2025. Significant growth is anticipated from the Tech sector, expected to exhibit a 27.1% earnings growth for Q1 2026.
Positive estimate revisions continue despite geopolitical tensions, with 8 of the 16 Zacks sectors, including Tech, Finance, and Construction, reporting upward adjustments since early March. The Energy sector, after initial difficulties, has also begun to see improved estimates.
Critical to note, excluding the Tech sector’s impact, the aggregate earnings growth rate for the S&P 500 would drop to 5.6%. The sector’s robust outlook continues to bolster overall market expectations, as its contributions are pivotal to aggregate earnings growth.
