S&P 500 Q1 Earnings Grow 13.4% With 78% EPS Beats, 62% Revenue Beats and Forward EPS at $277

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Published May 9, 2025, 09:39 PM

The S&P 500 is on track to achieve a record high in trailing 12-month earnings for the first quarter of 2025, showing a 10.8% increase over the past year. Approximately 90% of S&P 500 companies have reported their Q1 earnings, with 78% surpassing earnings per share (EPS) estimates, slightly above the five-year average of 77%. The index is experiencing a 13.4% year-over-year blended earnings growth rate, marking the second consecutive quarter of double-digit growth. Eight of the eleven sectors within the S&P 500 are reporting earnings growth. While 62% of companies have beaten revenue estimates, this figure is below the five-year average of 69%. Market reactions to earnings reports have been positive, with stocks that beat estimates rising by an average of 1.9%, while those that missed declined by 1.7%. The earnings beats are being rewarded at the highest rate since the third quarter of 2022. Forward EPS for the S&P 500 is projected at $277. Despite solid earnings results, the earnings revisions ratio remains near six-year lows, indicating cautious future earnings adjustments. The current earnings season highlights a divergence in investment strategies, with value investors and short sellers benefiting, while momentum and growth-oriented strategies show more apprehension.

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Sources

insight.factset.com(2)yardeni.com youtube.com

FactSet

@FactSet

What are the key themes among S&P 500 companies that have reported results this earnings season? In our latest podcast episode, John Butters discusses earnings growth rates, sector performance, and highlights among the Magnificent 7. 🎧 Listen now on Apple Podcasts or https://t.co/LkiAVdaI4t

FactSet

@FactSet

62% of $SPX companies have beaten revenue estimates to date for Q1, which is below the 5-year average of 69% and below the 10-year average of 64%. #earnings, #earningsinsight, https://t.co/T1mWS92Gcf https://t.co/IQ5Ay7fF8Y

Oh Come On!

@BluthCapital

Strange paradox: Good value investors and shorts enjoy earnings seasons. Good momo, technical, levered beta, GARP, and all the rest of the strategies fear them.