From Zacks Investment Research: 2025-06-11 20:56:00

The S&P 500 earnings for the June quarter are expected to increase by 5.2% compared to last year, with revenues up by 3.8%. However, estimates for 14 out of 16 Zacks sectors have decreased since the quarter began, with only Aerospace and Utilities showing higher estimates. Tech and Finance sectors, which contribute significantly to index earnings, have also seen cuts in estimates. The ‘Magnificent 7’ companies are expected to have 11.8% higher earnings and 11.2% higher revenues compared to last year. The Q2 earnings season has already started with results from Costco, AutoZone, and Oracle.

The onset of the tariff uncertainty in April has impacted earnings expectations for the current and upcoming quarters. Q2 earnings growth for the S&P 500 is projected to be 5.2% higher with 3.8% higher revenues. Estimates have been adjusted lower for 14 out of 16 sectors, with the biggest declines in Transportation, Autos, Energy, Construction, and Basic Materials. Tech sector earnings are expected to be up by 12% in Q2 with 10.5% higher revenues, however, estimates have declined since the quarter began. Despite the stabilizing trend in Tech sector estimates, macro uncertainty may continue to impact earnings estimates in the future.



Read more at Zacks Investment Research: Earnings Estimates Stabilize: A Closer Look – June 11, 2025