S&P 500 Earnings Season Update, April 25, 2025

 

So far, the S&P 500 is reporting solid results for the first quarter. Although the percentage of S&P 500 companies reporting positive earnings surprises is below recent averages, the magnitude of earnings surprises is above recent averages.

Among different sectors, health care is doing the best and energy on the bar.

If 10.1% is the actual growth rate for the quarter, it will mark the second consecutive quarter of double-digit earnings growth for the index. It will also mark the seventh consecutive quarter of year-over-year earnings growth.

As for the revenue growth, it is roughly 4.6% on 4/25, compared to a revenue growth rate of 4.3% last week and a revenue growth rate of 4.4% at the end of the first quarter (March 31).

For Q2 2025 through Q4 2025, analysts are calling for earnings growth rates of 6.4%, 8.8%, and 8.3%, respectively. For CY 2025, analysts are predicting (year-over-year) earnings growth of 9.7%.

So far, S&P 500 index has recovered much of the early April loss due to Trump's tariffs war (so are DJI and Nasdaq). Will the trend go up or down, very much depend on Trump.