From Nasdaq: 2025-05-30 18:56:00

Costco and AutoZone have released their fiscal quarter reports for May, starting off the Q2 earnings season. Costco exceeded expectations for earnings, revenues, and same-store sales, with a notable +8% growth in same-store sales. Despite tariff challenges, Costco’s performance remains strong. Expectations for Q2 earnings for the S&P 500 show a +5.4% increase from last year.

2025 Q2 earnings estimates have been decreasing steadily, with cuts in 15 out of 16 Zacks sectors since April. Tech and Finance sectors have also seen cuts, but Tech sector revisions have stabilized. The easing of tariff uncertainty has contributed to this stabilization.

Q1 earnings season isn’t over yet, with 98% of S&P 500 members reporting results. Total earnings are up +11.9% from last year, with 74.1% beating EPS estimates. However, EPS and revenue beats percentages are below historical averages. The Q1 EPS beats percentage is 74.1% compared to the 5-year average of 78.4%.

Costco and AutoZone’s reports mark the beginning of the Q2 earnings season, with Costco delivering strong results. Earnings expectations for the S&P 500 in Q2 show a +5.4% increase from last year. Despite challenges, Costco continues to perform well. Tariff uncertainty has stabilized, leading to more consistent revisions in Tech sector estimates.

The Zacks Investment Research report highlights the evolving earnings landscape, with insights into sector-specific revisions and trends. The Q1 earnings season has shown mixed results, with earnings and revenue beats percentages tracking below historical averages. The report provides valuable analysis for investors navigating the current market conditions.



Read more at Nasdaq:: Making Sense of Q2 Earnings Expectations