Earnings Season Outlook Brightens as Q3 Projections Soar
The Q3 earnings season is expected to be strong, with S&P 500 earnings projected to increase by +23.9% from last year's period.
Nvidia (NVDA), Micron (MU), Alphabet (GOOGL), Oracle (ORCL), and Adobe (ADBE) are among the companies that have been included in Zacks' Earnings Preview list, which suggests they may issue earnings surprises this quarter.
The overall setup remains favorable for Q3 earnings growth, with 14 of the 16 Zacks sectors expected to experience positive earnings growth. The Tech sector is a major contributor to this growth, but momentum is also broad-based across other sectors such as Transportation and Finance.
Nvidia's Q3 earnings are expected to increase by +90% year-over-year on +91.2% higher revenues, while Micron's earnings are anticipated to be up +938% from the same period last year. In contrast, Alphabet's Q3 earnings growth is projected at only +2.1%
Q3 earnings for the S&P 500 index would drop to +19.9% without Energy sector contributions and to +14.4% if Tech sector contributions are excluded.