Earnings

The S&P 500 posts its strongest earnings growth since 2021.

Corporate results continue to surprise positively

The Q1 2026 earnings season has delivered strong results for the S&P 500. With 94% of companies having reported, 84% exceeded earnings expectations and 81% beat revenue estimates. Annual earnings growth stands at 28.4%, the highest since 2021, while revenues are up 11.6%.

Consensus expectations point to earnings growth of approximately 22% for full-year 2026, supporting market optimism despite elevated valuations. The S&P 500 forward P/E stands at 21.1x, above historical averages.

Corporate performance continues to be one of the main supports for the U.S. market. Positive earnings revisions reflect companies’ operational resilience and adaptability. However, elevated valuations suggest that part of the optimism is already priced in, which could increase market sensitivity if expectations are not met.

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Source: FactSet