S&P 500 Earnings Growth Summary - May 2026
Overview
The S&P 500 index is currently near its all-time highs, buoyed by strong earnings reports from 91% of its constituent companies as of May 15, 2026. According to FactSet data, 84% of these firms surpassed earnings per share (EPS) expectations, while 80% exceeded revenue forecasts.
Earnings Growth
The blended earnings growth rate for Q1 2026 stands at 27.7% year-over-year, marking the strongest growth since Q4 2021, which recorded a 32.0% increase. This figure has significantly risen from the 13.0% growth anticipated by analysts at the end of March, reflecting a robust upward revision in corporate results across ten sectors.
Revenue Growth
The blended revenue growth rate for the S&P 500 in Q1 2026 is currently at 11.4% year-over-year, the highest since Q2 2022. Revenue expectations have been consistently revised upward, with the current estimate rising from 8.2% at the end of December to 11.4% today. All sectors are reporting positive revenue growth, with five sectors achieving double-digit growth, particularly driven by the technology sector.
Sector Performance
The technology sector is the largest contributor to overall revenue growth, with a year-over-year increase of 29.2%. Notable growth rates within this sector include:
- Semiconductors & Semiconductor Equipment: +52%
- Technology Hardware: +28%
- Electronic Equipment: +24%
- Software: +19%
- Communication Equipment: +16%
- IT Services: +8%
Excluding the technology sector, the blended revenue growth rate would drop to 9.0%.
Future Projections
Analysts expect revenue growth to moderate in the latter half of 2026, with projections of 11.4% for Q2, 10.1% for Q3, and 9.7% for Q4. Despite a challenging macroeconomic environment, US companies continue to show strong earnings growth, particularly in technology and communication services.
Market Reaction
The S&P 500 index is trading near the 7,500-point level, reflecting positive market sentiment following the strong earnings season. Key support levels are identified around 7,100 points (EMA50) and 6,800 points (EMA200).