S&P 500 Earnings Soar in Q2 as Tech Sector Leads Growth

The second quarter earnings season has seen a robust performance from S&P 500 companies, with total earnings up +41.7% from the same period last year on +14.8% higher revenues. According to Zacks Director of Research Sheraz Mian, 'For the 386 S&P 500 companies that have reported Q2 results, or 77.2% of the index’s total membership, total earnings are up +41.7% from the same period last year on +14.8% higher revenues.'

The numbers are significantly better than in other recent periods, both in terms of growth rates and beat percentages. Micron (MU) and Alphabet's (GOOGL) unrealized gain on its SpaceX stake have contributed to the strong earnings and revenue growth rates, although excluding these two companies, Q2 earnings for the remaining 384 index members would still be up +19.6% on +13.6% higher revenues.

The tech sector has been a major driver of growth since 2023's third quarter, with an expected earnings growth rate of +93.6% in Q2 2026. Excluding the contribution from Nvidia (NVDA), Micron and Alphabet, Q2 earnings growth for the rest of the Zacks Tech sector would drop to +31.4%.

Full-year 2026 earnings estimates have also been increasing, with 10 out of 16 Zacks sectors seeing a rise in estimates since March. The energy, basic materials, tech, industrials, utilities and business services sectors have seen the largest gains in estimates.