Earnings Season Is Two-Thirds Over. Here’s How It’s Going and What It Means for the Market.

About two-thirds of S&P 500 companies have reported their quarterly results this earnings season. And so far, those results have been very good, a highly positive signal for share prices.

According to FactSet, which tracks S&P 500 earnings, 84% of companies that have reported results have come in above earnings-per-share (EPS) estimates. That’s significantly higher than the 10-year average of 76%.

Will AI create the world’s first trillionaire? Our team just released a report on a little-known company, called an “Indispensable Monopoly,” providing the critical technology Nvidia and Intel both need.

Continue »

And if the remaining companies post similar numbers, resulting in 84% of all companies reporting better-than-expected earnings, it will be the highest percentage of S&P companies beating earnings since the second quarter of 2021. That’s great news for the entire U.S. stock market (the S&P 500 is a good proxy for the market, representing about 80% of total available market capitalization).

In addition, the growth rate for S&P 500 company earnings so far is about 27%. If it remains at that level through the end of first-quarter earnings season, it would be the highest year-over-year increase since the fourth quarter of 2021.

Image source: Getty Images.

The companies that are leading the way for quarterly earnings growth

That strong pace of earnings growth can largely be attributed to the “Magnificent Seven” companies that reported results last week. Positive EPS surprises by Google parent Alphabet (NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), and Meta Platforms (NASDAQ: META) were the largest contributors to this increase in the growth rate.

FactSet notes that all three tech companies had unusual developments during the quarter that significantly boosted their earnings. Alphabet’s results included a $37.7 billion increase due to unrealized gains on equity securities. Amazon recorded a $16.8 billion gain from its investment in AI company Anthropic. And Meta had an $8 billion tax benefit.

Nvidia (NASDAQ: NVDA), the largest company in the world by market capitalization,  reported its fiscal fourth-quarter results on Feb. 25. The company’s fiscal year begins on Feb. 1, so its fourth-quarter results are included in FactSet’s first-quarter calculations. Nvidia reported sales of $68.1 billion for the quarter and beat Wall Street’s earnings expectations. EPS came in at $1.62 for the quarter, about 6% above the average analyst estimate.

As a result, Nvidia was also one of the top five contributors to S&P 500 earnings growth for the quarter. The company will report its fiscal first-quarter results on May 20. While those results will technically contribute to FactSet’s second-quarter totals, Wall Street will still watch them closely to determine the overall first-quarter performance of the S&P 500.

Clearly, the stock market rally is still being driven by revenue and profit growth from the megacap tech companies.

Should you buy stock in Alphabet right now?

Before you buy stock in Alphabet, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $476,034!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,274,109!*

Now, it’s worth noting Stock Advisor’s total average return is 974% — a market-crushing outperformance compared to 206% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of May 7, 2026.

Matthew Benjamin has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy.

Earnings Season Is Two-Thirds Over. Here’s How It’s Going and What It Means for the Market. was originally published by The Motley Fool

Source link

Visited 1 times, 1 visit(s) today

Related Article

Why AppLovin Stock Trounced the Market Today

Adtech company AppLovin (APP +6.42%) was showered with love by the market on the second-to-last trading day of the week. It was no wonder — the company published first quarter results that delivered a pair of convincing beats on analyst estimates. It was rewarded for this with a 6%-plus increase in its share price by

The Trade Desk Stock Collapses 40% YTD, Wall Street Loses Faith

The Trade Desk’s stock collapsed again today after investors reacted badly to its latest earnings report and weak revenue guidance. The adtech company reported first-quarter revenue of $689 million, up 12% year over year. That still showed growth, but it was not enough for a company once valued like one of the strongest winners in

Iran war market jitters offer silver lining for investors

Traders work on the floor of the New York Stock Exchange (NYSE) on May 6, 2026 in New York City. Spencer Platt | Getty Images The Iran war has triggered big swings in the stock market since the conflict started more than two months ago. While sharp selloffs in stocks can be unsettling, they offer

Lincoln National Corporation Q1 2026 Earnings Call Summary

Lincoln National Corporation Q1 2026 Earnings Call Summary – Moby Strategic Execution and Performance Drivers Adjusted operating income grew 16% year-over-year, marking the seventh consecutive quarter of growth driven by balance sheet strengthening and business mix diversification. Management is prioritizing profitability and capital efficiency over top-line volume, specifically shifting the Annuities portfolio toward spread-based products

Have Stock Markets met their top? – Pre-FOMC Dow Jones, Nasdaq and S&P 500 Levels

Elior Manier Market Analyst Elior brings over seven years of experience in financial markets to our analyst team. Since 2018, he has actively engaged in observing, charting, and trading, driven by his passion for mastering market dynamics. With a profound understanding of the geopolitical and macroeconomic forces that shape market movements, Elior focuses on analysing

What Long-Term Investors Should Know Before Buying This Broad Market ETF

The Vanguard Total Stock Market ETF (NYSEMKT: VTI) owns roughly 3,500 U.S. stocks. That sounds like strong diversification for a single fund. It isn’t. The problem exists with the top-heavy concentration at the top of the portfolio. The fund’s top three holdings are Nvidia, Apple, and Microsoft. Combined, they account for 17% of the fund’s

Soluna Holdings (SLNH) Regains Compliance With Nasdaq

Soluna Holdings, Inc. (NASDAQ:SLNH) is one of the top 10 hot penny stocks to buy now. Soluna Holdings, Inc. (NASDAQ:SLNH) announced on May 1 that it received a notice from The Nasdaq Stock Market LLC informing the company that it has regained compliance with the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2). It regained

US Stock Market Today S&P 500 Futures Edge Higher As Rate Relief Hopes Build

The Morning Bull – US Market Morning Update Thursday, May, 7 2026 E-mini S&P 500 futures are a touch higher this morning, as investors weigh easing tensions in the Middle East against fresh signs of a mixed global economy. Hopes for progress in US Iran talks have pushed oil prices lower and pulled the US

This ‘win-win’ hedge trade is getting popular with traders

A trader works on the floor of the American Stock Exchange AMEX) at the New York Stock Exchange (NYSE) in New York, US, on Wednesday, May 6, 2026. Michael Nagle | Bloomberg | Getty Images Aggressive options trading in the semiconductor stocks is creating a volatility spread that’s being used by traders to stay bullish

Top Dividend Stocks To Consider In May 2026

The United States market has shown robust growth, climbing 3.2% in the past week and an impressive 31% over the last year, with earnings projected to grow by 16% annually. In such a dynamic environment, dividend stocks that offer both reliable income and potential for capital appreciation can be particularly appealing to investors seeking stability

US Stock Market Today S&P 500 Futures Inch Higher As Inflation Worries Ease

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St’s investing ideas for FREE. The Morning Bull – US Market Morning Update Thursday, May, 7 2026 US stock futures are slightly higher this morning, with E-mini S&P 500 contracts up about 0.1%, as investors balance cooler bond markets, cheaper oil,

Tianneng Battery says operations normal in response to unusual share price moves

End-of-day quote Shanghai S.E. 2026-05-06 5-day change 1st Jan Change 29.63 CNY -2.79% -17.17% -10.81% Published on 05/07/2026 at 05:27 am EDT Reuters This article is reserved for members Unlock the article: REGISTER NOW! © Reuters – 2026 05:27am Tianneng Battery says operations normal in response to unusual share price moves RE May. 04 Hong

Citadel’s Ken Griffin Just Said the Quiet Part Out Loud About Inflation — and Wall Street Isn’t Going to Like It

Despite heightened volatility, it’s shaping up to be another phenomenal year for Wall Street. This week, we’ve watched the iconic S&P 500 (SNPINDEX: ^GSPC) and growth-driven Nasdaq Composite (NASDAQINDEX: ^IXIC) trek to record highs, with the ageless Dow Jones Industrial Average (DJINDICES: ^DJI) eclipsing 50,000 earlier this year. While it would appear that nothing can

Yatsen’s $100 Million R&D Investment Wins Consumer Trust and Market Share

SHANGHAI, May 7, 2026 /PRNewswire/ — In a significant shift reshaping the global beauty industry, Chinese domestic cosmetics brands have captured nearly 60% of the world’s second-largest beauty market. This shift is being driven by unprecedented investments in scientific innovation, as well as rapidly evolving consumer expectations. Yatsen Group, one of China’s leading beauty companies, today

UK Stocks That May Be Trading Below Their Estimated Value In May 2026

The United Kingdom’s stock market, particularly the FTSE 100, has recently experienced a downturn influenced by weak trade data from China and declining commodity prices. As investors navigate these challenging conditions, identifying stocks that may be undervalued becomes increasingly important; such stocks often present opportunities when their intrinsic value is not fully reflected in their

MGE Energy announces underwritten public offering of 3,300,331 shares at $75.75/share

Market Closed – Nasdaq 04:00:00 2026-05-06 pm EDT 5-day change 1st Jan Change 80.80 USD +0.06% +2.60% +3.03% Published on 05/06/2026 at 10:58 pm EDT Reuters © Reuters – 2026 10:58pm MGE Energy announces underwritten public offering of 3,300,331 shares at $75.75/share RE May. 06 MGE Energy, Inc. announces proposed public offering of $250 million

Middle Eastern Penny Stocks To Watch In May 2026

The Middle Eastern stock markets have been experiencing a notable upswing, with Dubai leading the Gulf gains amid hopes for peace with Iran and Egypt reaching new record highs. In this context, investors are increasingly interested in exploring diverse opportunities, including penny stocks. Although the term “penny stocks” may seem outdated, these investments often refer

0
Would love your thoughts, please comment.x
()
x