For the 463 S&P 500 companies reporting Q2 results, representing 92.6% of the index, earnings grew by 40.9% year-over-year, alongside a 14.5% increase in revenue. Notably, 83.8% of these companies surpassed earnings per share (EPS) estimates, while 76.9% exceeded revenue estimates.
The Q2 performance notably surpassed recent historical averages, with earnings growth rates and beat percentages clearly above the group’s 20-quarter averages. Excluding Micron Technology and Alphabet, the remaining 461 companies reported a 21.5% growth in earnings on 13.4% higher revenue.
In the Tech sector, earnings growth was heavily concentrated in Nvidia, Micron, and Alphabet; stripping out these contributors reduced the sector’s growth to 33.7%, down from 95.2%. Full-year 2026 earnings estimates have risen for 10 of the 16 Zacks sectors since March, particularly in Energy, Tech, and Industrials, while Transportation and Consumer Discretionary sectors saw declines.
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