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%).
*Not in order of contribution
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