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 Q1 2026?
The answer is yes. For Q1 2026, the estimated (year-over-year) earnings growth rate for the “Magnificent 7” companies is 22.8%. 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 first quarter is 10.1%.
However, it should be noted that NVIDIA is expected to be the top contributor to (year-over-year) earnings growth for the “Magnificent 7” companies (and the entire S&P 500) for Q1 2026. If NVIDIA were excluded, the estimated earnings growth for the “Magnificent 7” companies for Q1 2026 would fall to 6.4% from 22.8%.
Thus, if NVIDIA were excluded, the other 493 companies would be reporting higher earnings growth than the remaining “Magnificent 7” companies for Q1 2026 (10.1% vs. 6.4%). Micron Technology, Eli Lilly and Company, Broadcom, and Sandisk are the next top four contributors to earnings growth for the S&P 500 for Q1 2026 after NVIDIA.
For CY 2026, the estimated (year-over-year) earnings growth rate for the “Magnificent 7” companies is 24.6%. On the other hand, the estimated earnings growth rate for the remaining 493 companies in the S&P 500 for CY 2026 is 15.9%.
Again, it should be noted that NVIDIA is also expected to be the top contributor to (year-over-year) earnings growth for the “Magnificent 7” companies (and the entire S&P 500) for CY 2026. If NVIDIA were excluded, the estimated earnings growth for the “Magnificent 7” companies for CY 2026 would fall to 13.2% from 24.8%.
Thus, if NVIDIA were excluded, the other 493 companies would also be projected to report higher earnings growth than the remaining “Magnificent 7” companies for CY 2026 (15.9% vs. 13.2%).
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*Not in order of contribution
This blog post is for informational purposes only. The information contained in this blog post is not legal, tax, or investment advice. FactSet does not endorse or recommend any investments and assumes no liability for any consequence relating directly or indirectly to any action or inaction taken based on the information contained in this article.
Insight/Author%20Bios/JohnButters2.jpg)
Mr. John Butters is Vice President and Senior Earnings Analyst at FactSet. His weekly research report, “Earnings Insight,” provides analysis and commentary on trends in corporate earnings data for the S&P 500 including revisions to estimates, year-over-year growth, performance relative to expectations, and valuations. He is a widely used source for the media and has appeared on CNBC, Fox Business News, and the Business News Network. In addition, he has been cited by numerous print and online publications such as The Wall Street Journal, The Financial Times, The New York Times, MarketWatch, and Yahoo! Finance. Mr. Butters has over 15 years of experience in the financial services industry. Prior to FactSet in January 2011, he worked for more than 10 years at Thomson Reuters (Thomson Financial), most recently as Director of U.S. Earnings Research (2007-2010).
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