In aggregate, the “Magnificent 7” companies have reported higher (year-over-year) earnings growth than the other 493 companies in the S&P 500 over the past several quarters. Is this trend expected to continue in Q2 2026?
The answer is yes. For Q2 2026, the estimated (year-over-year) earnings growth rate for the “Magnificent 7” companies is 31.1%. On the other hand, the blended (combines actual and estimated results) earnings growth rate for the remaining 493 companies in the S&P 500 for the second quarter is 22.8%.
However, if the other 493 companies report actual earnings growth of 22.8% for Q2 2026, it will mark the highest (year-over-year) earnings growth rate reported by this group of companies since Q4 2021 (32.3%).
In fact, four of the five top contributors to earnings growth for the S&P 500 for Q2 2026 are not “Magnificent 7” companies: Micron Technology, Chevron, Exxon Mobil, and Broadcom. NVIDIA is the only “Magnificent 7” company that is also a top-5 contributor to earnings growth for Q2 2026.
Overall, Micron Technology and NVIDIA are the top 2 contributors to (year-over-year) earnings growth for the S&P 500 for Q2 2026. If these 2 companies were excluded, the blended earnings growth rate for the S&P 500 for Q2 would fall to 16.8% from 24.7%.
It is interesting to note that analysts expect higher earnings growth for the other 493 companies in the 2nd half of 2026. For Q3 2026 and Q4 2026, the “Magnificent 7” companies are projected to report earnings growth rates of 31.8% and 22.8% while the other 493 companies are predicted to report earnings growth rates of 25.5% and 25.3%. Thus, for Q4 2026, the other 493 companies are expected to report higher (year-over-year) earnings growth than the “Magnificent 7” companies.
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