Oracle and Adobe both reported fiscal quarter results ending in August. Adobe beat estimates and raised guidance, but concerns persist about its future in the AI-centric world. Oracle’s results exceeded expectations, leading to an 81.8% increase in share value over the past year. Adobe’s stock performance has lagged, leading to its lowest valuation in over a decade.

Alphabet faces skepticism about Google’s search dominance sustainability, unlike Adobe. Despite this, Alphabet has other businesses to rely on. Adobe’s fiscal year ends in November, with earnings expected to grow by 12% this year and next. The prevailing view is bearish on Adobe, leading to its lowest valuation in over 10 years.

The Tech sector is expected to drive earnings growth in Q3, with a 12% increase projected. However, other sectors like Medical, Transportation, Basic Materials, and Consumer Staples have experienced declines. The Tech sector’s strong growth contribution is crucial for overall S&P 500 earnings growth in Q3.

Earnings estimates for the Tech and Finance sectors have been positive, offsetting the pressure on other sectors. Q3 earnings expectations have improved for 5 of the 16 Zacks sectors, including Tech, Finance, and Energy. The Tech sector is expected to play a significant role in driving overall earnings growth in Q3.

Q3 earnings estimates for the S&P 500 index suggest a 5.1% increase from the previous year, with the Tech sector leading the growth. However, concerns remain in sectors like Medical, Transportation, Basic Materials, and Consumer Staples. The Tech sector’s performance will be crucial for overall earnings growth in Q3.

Read more at Nasdaq, Inc.: Q3 Earnings Season Gets Underway: A Closer Look