S&P 500 Reporting Largest Year-over-Year Revenue Growth Since Q4 2022

The blended (combines actual results for companies that have reported and estimated results for companies that have yet to report) earnings growth rates for the S&P 500 for Q2 2024 is 10.8%. If 10.8% is the actual growth rate for the quarter, it will mark the largest earnings growth rate reported by the index since Q4 2021 (31.4%). Given the growth in earnings, what is the S&P 500 reporting for revenue growth for Q2?

The blended (year-over-year) revenue growth rate for the S&P 500 for Q2 2024 is 5.2%. This growth rate is below the 5-year average revenue growth rate of 6.7% but above the 10-year average revenue growth rate of 5.1%.

However, if 5.2% is the actual revenue growth rate for the quarter, it will mark largest revenue growth rate reported by the index since Q4 2022 (5.4%). It will also mark the 15^th consecutive quarter of revenue growth for the index. This would tie the mark with Q3 2016 through Q1 2020 for the longest period of consecutive quarters of (year-over-year) revenue growth for the S&P 500 since FactSet began tracking this metric in 2008.

At the sector level for Q2 2024, ten sectors are reporting year-over-year growth in revenues, led by the Information Technology, Energy, and Communication Services sectors. On the other hand, the Materials sector is the only sector reporting a year-over-year decline in revenues.

It should be noted that analysts are currently projecting (year-over-year) revenue growth for the next five quarters for the S&P 500. For Q3 2024 through Q3 2025, the current estimates for revenue growth are 4.9%, 5.4%, 5.8%, 5.8%, and 6.2%.

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