Zacks Director of Research Sheraz Mian predicts a +16.6% increase in Q4 earnings for the ‘Magnificent 7’ companies with +16.2% higher revenues. The Tech sector continues to be a key growth driver, contributing to almost half of S&P 500 earnings growth in 2026.

Total S&P 500 earnings for 2025 Q4 are expected to rise by +6.9% from the previous year, driven by a +7.7% increase in revenues. The Tech sector’s significant contribution has boosted earnings growth, with the sector expected to account for 35.6% of the index’s total earnings.

The Tech sector has been a consistent driver of earnings growth since 2023, with expectations for +13% earnings growth in 2025 Q4 on +15.8% higher revenues. This trend is expected to continue into 2026, with positive estimate revisions and strong market support for companies like NVIDIA and Microsoft.

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For more insights and recommendations from Zacks Investment Research, including analysis of top-performing stocks like Microsoft Corporation and NVIDIA Corporation, investors can access free reports and resources provided by the firm. Stay informed and make informed investment decisions with Zacks’ expertise and market insights.

Read more at Nasdaq: Zacks Earnings Trends Highlights: NVDA and MSFT