Tech sector earnings expected to increase in Q2 with positive revisions for Microsoft, Alphabet, and Meta

From Nasdaq: 2025-05-14 18:53:00

Total Q1 earnings for the 456 S&P 500 members are up +12.1% from last year, with 73.9% beating EPS estimates. Estimates for Q2 have been under pressure, especially in sectors like Transportation and Energy. The Tech sector’s earnings are expected to be up +12.4% in Q2.

Tech sector earnings are expected to increase in Q2, with positive revisions for Microsoft, Alphabet, and Meta. Estimates have come down for 13 of the 16 Zacks sectors, with the biggest declines in Transportation, Autos, Energy, Construction, and Basic Materials.

While Q2 estimates have been decreasing, the Tech sector’s earnings growth expectations have stabilized. The overall earnings picture for the S&P 500 index on an annual basis remains positive, despite worries about the economy’s growth momentum.

The Zacks Research team has identified 5 stocks with the potential to gain +100% or more, with one stock highlighted as having the highest potential for significant gains. This top pick is in the financial sector, boasting a fast-growing customer base and innovative solutions.

For more information and detailed historical actuals and estimates for current and following periods, access the full report at the provided link.



Read more at Nasdaq:: Making Sense of the Evolving Earnings Picture