Nvidia, Micron Lead Strong Q3 Earnings Outlook

The third-quarter earnings season is shaping up to be strong for many companies, particularly in the tech sector. According to Zacks' Earnings Preview, S&P 500 earnings are expected to grow by +24% from the same period last year, marking the eighth consecutive quarter of double-digit earnings growth.

Fourteen out of 16 Zacks sectors are on track for positive earnings growth in Q3, with five sectors expected to see double-digit growth. Nvidia and Micron have been enjoying record-breaking earnings runs recently, and this trend continues into Q3, with Nvidia's earnings expected to increase by +90% year-over-year and Micron's revenues expected to grow by +348.6%. However, the revisions trend remains positive and broad-based across several sectors.

The Tech sector is a major growth contributor, but momentum has spread to other areas as well, including Energy, Transportation, Finance, Aerospace, Industrials, Utilities, and Autos. On the negative side, Q3 estimates have been under pressure for some sectors since the quarter began, particularly Conglomerates and Consumer Staples.