Q1 2026 Earnings Blowout: 85% of S&P 500 Beat EPS Estimates as Tech Leads
First-quarter 2026 earnings have shattered records, with 85% of S&P 500 companies beating EPS estimates and reporting aggregate earnings 16.7% above forecasts. Technology and materials sectors led gains, though a Ford tariff benefit skewed consumer discretionary results.
Record-Breaking Beat Rate Across S&P 500
Overall, 97% of the companies in the S&P 500 have reported actual results for Q1 2026 to date. Of these companies, 85% have reported actual EPS above estimates, which is above the 5-year average of 78% and above the 10-year average of 76%. If 85% is the actual number for the quarter, it will mark the highest percentage of S&P 500 companies reporting a positive EPS surprise since Q2 2021 (87%).
Earnings Growth Outpaces Expectations
In aggregate, companies are reporting earnings that are 16.7% above estimates, which is also above the 5-year average of 7.3% and above the 10-year average of 7.1%. The blended (year-over-year) earnings growth rate for the first quarter is 28.6%, which is slightly above the earnings growth seen in recent periods.
Technology Sector Leads With Mega-Cap Beats
In the Information Technology sector, the positive EPS surprises reported by NVIDIA ($1.87 vs. $1.75), Microsoft ($4.27 vs. $4.06), Sandisk ($23.41 vs. $14.62), Intel ($0.29 vs. $0.02), Apple ($2.01 vs. $1.95), and Dell Technologies ($4.86 vs. $2.96) have been solid contributors to the increase in overall market performance.
Sector Performance and Notable Results
At the sector level, the Utilities (+7.3%), Information Technology (+3.9%), and Materials (+3.3%) sectors are reporting the largest positive (aggregate) differences between actual revenues and estimated revenues, while the Energy (0.9%), Financials (0.9%), and Consumer Staples (+1.0%) sectors are reporting the smallest positive (aggregate) difference from forecasts.
Upcoming Week's Earnings Focus
Several large tech companies, including Broadcom and CrowdStrike, are reporting earnings this week. Retailers Lululemon, Five Below, and Macy's are reporting as well. Some highly anticipated earnings will be reported, including those of CrowdStrike and Broadcom, and investors will no doubt be watching them carefully.