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S&P 500 Earnings Forecasts Climb Sharply
11 Jul
Summary
- Energy sector Q2 earnings estimates doubled since April.
- S&P 500 Q2 earnings expected to grow 23.8% year-over-year.
- Big banks kick off Q2 reporting cycle this week.
This week marks the beginning of the Q2 earnings season, with numerous companies, including 29 S&P 500 members, set to release their financial results. Major banks are prominently featured, alongside bellwethers like Netflix and Johnson & Johnson.
The "improving earnings narrative" continues, with S&P 500 aggregate profit estimates trending upward. Initially driven by the Tech sector, the rally has recently been bolstered by Energy and Basic Materials, particularly following geopolitical events in early March.
The Energy sector has experienced a remarkable uplift, with Q2 earnings estimates roughly doubling since April. Other sectors like Utilities and Finance are also seeing positive revisions as the quarter concludes.
For the full year 2026, Q2 S&P 500 earnings are anticipated to grow by 23.8% compared to the previous year, with revenues expected to rise by 11.3%. Earnings expectations for Q2 have surged by nearly 7 percentage points in the last three months.
Major financial institutions including JPMorgan, Wells Fargo, Citigroup, and Bank of America are scheduled to report their Q2 results starting Tuesday morning, initiating the reporting cycle for the Finance sector.
