Q3 Earnings Growth Expected to Remain Strong Across Sectors

The Q3 earnings season is expected to be strong, with S&P 500 earnings anticipated to increase by +24% from last year's same period. This marks the 8th consecutive quarter of double-digit growth for the index.

The Tech sector continues to drive this growth, but momentum is broad-based across 14 out of 16 Zacks sectors. The revisions trend remains positive and widespread, indicating a steadily improving outlook.

Nvidia (NVDA) and Micron (MU) are expected to continue their record earnings streak in Q3, with Nvidia's earnings projected to increase by +90% year-over-year on +91.2% higher revenues, while Micron is expected to see +938% year-over-year earnings growth and +348.6% revenue growth.

Excluding the Tech sector, S&P 500 earnings growth drops to +14.4%. The Q3 earnings season will gain momentum when big banks report on October 13th, with a total of 7 S&P 500 members having already reported their fiscal August-quarter results.