Corporate Earnings for Q4 2025
The recent US corporate earnings season for Q4 2025 (concluding in February 2026) has been remarkably strong, characterized by high revenue growth and a rare streak of double-digit profit expansion.
As of late February 2026, with approximately 74% of S&P 500 companies having reported:
Key Profitability Metrics
- Earnings Growth: The blended year-over-year earnings growth rate is 13.2%. If this holds, it marks the 5th consecutive quarter of double-digit profit growth for the S&P 500.
- Revenue Growth: Revenue is up 9.0% year-over-year. This is the highest revenue growth rate reported by the index since Q3 2022, signaling robust demand despite economic headwinds.
- Beat Rates: While companies are still beating expectations, the enthusiasm is cooling slightly. Roughly 74% of companies have reported EPS above estimates, which is just below the 5-year average of 78%.
Standout Sectors
Profitability this season has been driven primarily by a few heavy-hitting sectors:
- Information Technology: The undisputed leader, seeing earnings growth above 20% fueled by continued AI infrastructure spending and software demand.
- Communication Services: Boosted by massive revenue beats from giants like Alphabet and Meta.
- Health Care: A significant contributor to index-wide revenue growth, led by companies like Eli Lilly and Cigna.
- Financials: Benefited from a major revival in Wall Street fees, with global M&A volume hitting nearly $5 trillion in 2025.
VIX at Close - 2/18/2026
The CBOE Volatility Index (VIX) and the CBOE 9-Day Volatility Index (VIX9D) both closed lower today as market volatility fell from previous sessions.
Regular Trading for February 18, 2026
| Index | Symbol | Value | Change |
| CBOE Volatility Index | VIX | 19.62 | -3.30% |
| CBOE 9-Day Volatility Index | VIX9D | 19.08 | -6.06% |
VIX at Close - 2/13/2026
The CBOE Volatility Index (VIX) closed at 20.82 on Friday, February 13, 2026. This modestly elevated figure signals higher-than-average implied volatility, indicating investors anticipate significant near-term market fluctuation.
VIX at the Close - 2/12/2026
For the close of normal trading, Thursday, February 12, 2026, the volatility indices ended as follows:
Index Closing Values
| Index | Symbol | Value | Change |
| CBOE Volatility Index | VIX | 20.82 | +17.96% |
| CBOE 9-Day Volatility Index | VIX9D | 19.80 | +39.63% |
US Equity Markets Close
US equity markets fell sharply on Thursday, February 12, 2026, marking the second-worst daily performance for the S&P 500 since Thanksgiving. The downturn was primarily driven by a sell-off in technology and software sectors as investors reassessed the long-term impact of Artificial Intelligence (AI) on various industries.
Major Index Performance
|
Index |
Price |
Change |
Change |
|
S&P 500 |
6,832.76 |
-108.71 |
-1.57% |
|
DJI Average |
49,451.98 |
-669.42 |
-1.34% |
|
Nasdaq |
22,597.15 |
-469.32 |
-2.03% |
Market Drivers
- AI Disruption Concerns: Investors "punished" companies viewed as potential losers in the shift toward automation. Growth shares were particularly hard-hit, with the Nasdaq dropping more than 2% as valuation-sensitive names faced pressure.
- Earnings Disappointments: Cisco Systems fell over 12% after warning of higher expenses, while AppLovin tumbled nearly 20% on AI competition fears. Conversely, Palantir fell 4.8% despite reporting 70% revenue growth, as bearish scrutiny over its high valuation weighed on the stock.
- Economic Data: A "new housing crisis" narrative emerged after existing home sales plunged to a 16-month low in January. Additionally, initial unemployment claims came in higher than expected (227,000), further signaling a softening economy.
- Flight to Safety: As equities and cryptocurrencies dipped, investors moved capital into U.S. Treasuries, causing the 10-year yield to drop to 4.10%.
Other Asset Closures
- Commodities: Gold broke below $5,000 (dropping 3.5%), and Silver plunged over 10%. WTI Crude Oil closed lower at $62.91 per barrel.
- Volatility: The VIX (fear gauge) spiked as participants added hedges ahead of tomorrow's Consumer Price Index (CPI) report.
