S&P 500 Earnings Season Update: February 6, 2026

More than halfway through the Q4 earnings season, the S&P 500 is reporting solid results. Both the percentage of S&P 500 companies reporting positive earnings surprises and the magnitude of earnings surprises are in line with recent averages. As a result, the index is reporting higher earnings for the fourth quarter today relative to the end of last week and relative to the end of the quarter. The S&P 500 is now reporting double-digit (year-over-year) earnings growth for the 5th straight quarter.

Overall, 59% of the companies in the S&P 500 have reported actual results for Q4 2025 to date. Of these companies, 76% have reported actual EPS above estimates, which is below the 5-year average of 78% but equal to the 10-year average of 76%. In aggregate, companies are reporting earnings that are 7.6% above estimates, which is between the 5-year average of 7.7% and the 10-year average of 7.0%. Historical averages reflect actual results from all 500 companies, not the actual results from the percentage of companies that have reported through this point in time.

During the past week, positive EPS surprises reported by companies in multiple sectors (led by the Communication Services, Health Care, and Financials sectors) were mainly responsible for the increase in the overall earnings growth rate for the index over this period. Since December 31, positive EPS surprises reported by companies in the Industrials, Information Technology, and Communication Services sectors have been the largest contributors to the increase in the overall earnings growth rate for the index over this period.

As a result, the index is reporting higher earnings for the fourth quarter today relative to the end of last week and relative to the end of the quarter. The blended (combines actual results for companies that have reported and estimated results for companies that have yet to report) earnings growth rate for the fourth quarter is 13.0% today, compared to an earnings growth rate of 11.9% last week and an earnings growth rate of 8.3% at the end of the fourth quarter (December 31). 

If 13.0% is the actual growth rate for the quarter, it will mark the fifth consecutive quarter of double-digit (year-over-year) earnings growth for the index.

Nine of the eleven sectors are reporting year-over-year growth, led by the Information Technology, Industrials, and Communication Services sectors. On the other hand, two sectors are reporting a year-over-year decline in earnings: Consumer Discretionary and Health Care.

In terms of revenues, 73% of S&P 500 companies have reported actual revenues above estimates, which is above the 5-year average of 70% and above the 10-year average of 66%. In aggregate, companies are reporting revenues that are 1.4% above the estimates, which is below the 5-year average of 2.0% but equal to the 10-year average of 1.4%. Again, historical averages reflect actual results from all 500 companies, not the actual results from the percentage of companies that have reported through this point in time.

During the past week, positive revenue surprises reported by companies in multiple sectors were mainly responsible for the increase in the overall revenue growth rate for the index over this period. Since December 31, positive revenue surprises reported by companies in the Information Technology, Communication Services, Health Care, and Industrials sectors have been the largest contributors to the increase in the overall revenue growth rate for the index over this period.

As a result, the blended revenue growth rate for the fourth quarter is 8.8% today, compared to a revenue growth rate of 8.2% last week and a revenue growth rate of 7.8% at the end of the fourth quarter (December 31). 

If 8.8% is the actual revenue growth rate for the quarter, it will mark the highest revenue growth rate reported by the index since Q3 2022 (11.0%). It will also mark the 21st consecutive quarter of revenue growth for the index.

Ten sectors are reporting year-over-year growth in revenues, led by the Information Technology, Communication Services, and Health Care sectors. On the other hand, the Energy sector is the only sector reporting a year-over-year decline in revenues.

For Q1 2026 and Q2 2026, analysts are calling for earnings growth rates of 11.3% and 14.9%, respectively. For CY 2026 analysts are projecting (year-over-year) earnings growth of 14.1%.

The forward 12-month P/E ratio is 21.5, which is above the 5-year average (20.0) and above the 10-year average (18.8). However, this P/E ratio is below the forward P/E ratio of 22.0 recorded at the end of the fourth quarter (December 31).

During the upcoming week, 78 S&P 500 companies (including 3 Dow 30 components) are scheduled to report results for the fourth quarter.

Q4 2025: Scorecard

Q4 2025: Growth

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