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.
