A Closer Look at Earnings Expectations for Q1 & Full-Year 2025
From Nasdaq: 2025-03-19 18:58:00
Total 2025 Q1 earnings for the S&P 500 index are expected to be up +6.1% from the same period last year on +3.7% higher revenues. Q1 earnings estimates have steadily decreased since the quarter began, down from +10.4% at the start of January 2025. The ‘Magnificent 7’ companies are projected to see earnings up +13.9% from last year on +11.9% higher revenues.
The Q1 earnings season will kick off with big banks reporting results on April 11th. Early results from companies like Costco, Oracle, and Adobe for their February-ending fiscal quarters have been lackluster, with market participants concerned about guidance amidst macro worries. Oracle missed on top- and bottom-lines, while Adobe beat estimates but showed decelerating growth trends.
The Tech sector continues to be a growth driver, with expected earnings up +12.7% in Q1 from last year on +10.0% higher revenues. Tech sector earnings have increased steadily over the past year, but Q1 estimates have been slightly under pressure since January. The sector is expected to see double-digit earnings growth for the seventh consecutive quarter.
2025 Q1 total S&P 500 earnings are forecasted to be up +6.1% from last year on +3.7% higher revenues. Estimates for Q1 have been decreasing since the quarter began, with 15 out of 16 sectors experiencing cuts. Despite some sectors facing challenges, the overall earnings picture shows expectations for double-digit growth in the coming years.
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