Tech sector earnings estimates rising, positive revisions for Microsoft, Alphabet, and Meta

From Nasdaq Inc.: 2025-05-08 05:24:00

Tech sector Q2 earnings estimates have started to rise again after a period of decline, with expectations for a +6.4% increase in earnings and +3.9% higher revenues. However, overall estimates for the S&P 500 have been trending downwards due to uncertainties in the macroeconomic landscape.

The recent reversal in Tech sector estimates is attributed to the delay in tariff announcements, which initially caused estimates to decline. Despite this, Q2 earnings for major players like Microsoft, Alphabet, and Meta are showing positive revisions in recent days.

While Q2 estimates for the Tech sector have improved, concerns about the economy’s growth momentum may lead to further adjustments in the days ahead. The negative impact of tariffs is expected to be reflected in upcoming data, with import-related activities affecting the GDP in the first quarter of the year.

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Read more at Nasdaq Inc.: Zacks Earnings Trends Highlights: Microsoft, Alphabet and Meta