With Q4 results from 14% of S&P 500 members already out, we can confidently say that this reporting cycle is shaping up to be a good one for the market. Not only are companies comfortably beating consensus estimates, particularly on the earnings front, but the growth pace represents a notable acceleration from the preceding periods.
Importantly, the tone and substance of management commentary is adding to confidence in the overall earnings outlook, which already reflected a strong growth momentum in 2025.
Through Thursday, January 23rd, we have seen Q4 results from 71 S&P 500 members or 14.2% of the index’s total membership. Total earnings for these companies are up +19.2% from the same period last year on +6.7% higher revenues, with 83.1% beating EPS estimates and 67.6% beating revenue estimates.
This is better performance from this group of 71 index members relative to what we have seen from this group of companies in other recent periods. It will be interesting to see if this performance can continue as we get into the heart of the reporting cycle in the coming days, particularly as we see more results from the Tech sector.
The Tech sector has been a key growth driver in recent quarters and the trend is expected to continue in Q4 and beyond. While all sectors are expected to enjoy positive earnings growth in 2025, the Tech sector continues to be a significant growth contributor.
For more details about the Q4 earnings season and evolving expectations for the coming periods, please check out our weekly Earnings Trends report here >>>>Earnings Picture Remains Strong: A Closer Look
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