A number of the companies in the “Magnificent 7” have been top contributors to year-over-year earnings growth for the S&P 500 in recent quarters. How many companies in the “Magnificent 7” are expected to be among the top five contributors to earnings growth for the S&P 500 for the fourth quarter?
Overall, the blended earnings growth rate for the S&P 500 for Q4 2025 is 8.2%. The top five contributors to year-over-year earnings growth for the S&P 500 for Q4 (in order of contribution) are NVIDIA, Boeing, Alphabet, Micron Technology, and Microsoft. Thus, three of the top five contributors to year-over-year earnings growth for the index for the fourth quarter are “Magnificent 7” companies. Outside of the “Magnificent 7” companies, Boeing is benefitting from an easy comparison to a large loss reported in the year-ago quarter due to charges and other expenses that were included in the year-ago (non-GAAP) EPS.
In aggregate, the “Magnificent 7” companies are expected to report year-over-year earnings growth of 20.3% for the fourth quarter. Excluding these seven companies, the blended (combines actual and estimated results) earnings growth rate for the fourth quarter for the remaining 493 companies in the S&P 500 would be 4.1%.
Four of the “Magnificent 7” companies are scheduled to report earnings for Q4 during the week of January 26: Apple, Meta Platforms, Microsoft, and Tesla.
Looking ahead, analysts expect both the “Magnificent 7” companies and the other 493 S&P 500 companies to report double-digit earnings growth in CY 2026. The estimated earnings growth rate for the “Magnificent 7” companies for CY 2026 is 22.8%, while the estimated earnings growth rate for the other 493 S&P 500 companies for CY 2026 is 12.1%.
*Not in order of contribution
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