Breaking Down the Mag 7 Earnings Outlook

From Nasdaq: 2025-03-26 18:56:00

The S&P 500 index is expected to see a +5.9% increase in Q1 2025 earnings with +3.7% higher revenues, down from the initial estimate of +10.4%. The ‘Magnificent 7’ group is predicted to have +13.1% earnings growth on +11.9% higher revenues. However, the group’s stock performance has been mixed, with Meta Platforms outperforming and Tesla underperforming. Other members fall in between.
Tech sector earnings are forecasted to rise by +12.4% in Q1 2025 on +10.1% higher revenues, marking the 7th consecutive quarter of double-digit earnings growth. Despite steady earnings growth, recent data indicates a slight decline in Q1 estimates. The sector is expected to continue on a growth trajectory in the upcoming quarters.
The ‘Magnificent 7’ group’s earnings outlook has diminished compared to previous years, with +13.1% earnings growth expected in Q1 2025. Aggregate earnings for the group are forecasted to reach $556.1 billion in 2025. Tesla, Apple, and Meta have seen a leveling out in earnings estimates, while the rest of the group continues to show positive growth prospects.



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