- Total earnings for the S&P 500 members reporting Q4 results are up +12.9% with 76.4% beating EPS estimates and 71.9% beating revenue estimates.
- Earnings estimates for 2026 Q1 have modestly increased, with positive revisions in Tech, Finance, Utilities, Business Services, and Industrial Products sectors.
- Negative revisions for 2026 Q1 estimates in Energy, Medical, Consumer Discretionary, and Construction sectors.
- Tech sector’s earnings growth has been crucial, driving overall aggregate earnings growth since Q2 2023.
- Gartner missed guidance expectations, leading to a -69% stock decline in the past year.
- Concerns about software and IT consulting business models affecting companies like Gartner, Accenture, and Adobe.
- Tech sector’s outsized role in S&P 500, bringing 36.8% of total earnings and accounting for 42.2% of market capitalization.
- Positive estimate revision trend in Tech sector supporting strong market following and stock performance.
- Zacks Research Chief picks a stock with potential for "at least double" returns, emphasizing the importance of expert recommendations.
Read more at Nasdaq: Analyzing the Evolving Earnings Picture: What Should Investors Know?