S&P 500 Reporting Highest Revenue Growth Since Q4 2021

At this late stage of the earnings season, the (blended) revenue growth rate for the S&P 500 for Q2 is 15.0%. If 15.0% is the actual growth rate for the quarter, it will mark the highest revenue growth rate reported by the index since Q4 2021 (16.1%).

However, the Q2 revenue growth rate for the S&P 500 has been increasing over a longer period. On March 31, the estimated revenue growth rate for Q2 was 9.5%. On June 30, the estimated revenue growth rate for Q2 was 12.2%. Today, the (blended) revenue growth rate is 15.0%.

All eleven sectors are reporting (or have reported) year-over-year revenue growth. Five of these eleven sectors are reporting (or have reported) double-digit revenue growth led by the Energy, Information Technology, and Communication Services sectors.

The Energy sector reported the highest (year-over-year) revenue growth rate of all eleven sectors at 42.5%. Higher (average) year-over-year oil prices contributed to the year-over-year increase in revenues for this sector, as the average price of oil in Q2 2026 ($92.55) was 45% above the average price for oil in Q2 2025 ($63.68). At the sub-industry level, all 5 sub-industries in the sector reported year-over-year growth in revenues: Oil & Gas Refining & Marketing (53%), Integrated Oil & Gas (46%), Oil & Gas Exploration & Production (32%), Oil & Gas Storage & Transportation (28%), and Oil & Gas Equipment & Services (2%).

The Information Technology sector is reporting the second-highest (year-over-year) revenue growth rate of all eleven sectors at 35.9%. At the industry level, all 6 industries in the sector are reporting year-over-year revenue growth: Semiconductors & Semiconductor Equipment (77%), Technology Hardware, Storage, & Peripherals (31%), Electronic Equipment, Instruments, & Components (21%), Communication Equipment (20%), Software (18%), and IT Services (4%).

The Communication Services sector is reporting the third-highest (year-over-year) revenue growth rate of all eleven sectors at 15.3%. At the industry level, all 5 industries in the sector are reporting year-over-year revenue growth: Interactive Media & Services (25%), Media (11%), Wireless Telecommunication Services (8%), Entertainment (5%), and Diversified Telecommunication Services (less than 1%).

The Information Technology and Energy sectors are also the largest contributors to revenue growth for the S&P 500 for Q2. If these two sectors were excluded, the blended revenue growth rate for the S&P 500 for Q2 would fall to 9.7% from 15.0%.

Looking ahead, analysts expect lower revenue growth for the S&P 500 for the 2nd half of 2026. For Q3 2026 and Q4 2026, the estimated revenue growth rates for the index are 11.3%, and 10.9%, respectively.

For CY 2027, the estimated revenue growth rate is 8.4%.

The FactSet Earnings Insight report will not be published on August 14 or August 21. The next edition of the report will be published on August 28.

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